Next Chicago Fed president to be economist Austan Goolsbee

According to an announcement made on Thursday, the economist Austan Goolsbee will succeed Janet Yellen as president of the Chicago Federal Reserve early in the new year as the central bank mulls over crucial policy decisions.

Goolsbee will officially assume the position on January 9, 2023 and complete the term begun by the retiring Charles Evans, which expires on February 28, 2026.

Currently a professor at the famous Booth School of Business at the University of Chicago, Goolsbee served as chairman of the White House's Council of Economic Advisors under former President Barack Obama from 2010 to 2011.

“Austan is an extraordinary option to be the future president of the Federal Reserve Bank of Chicago. Helene Gayle, head of the Chicago Fed's board of governors, said in a statement, "He is a highly skilled economist with considerable policy experience and a deep dedication to public service."

Goolsbee joins the Chicago Fed during a crucial period for the central bank.

In a bid to combat the greatest levels of inflation in more than four decades, the Federal Reserve has raised its benchmark interest rate six times this year and is projected to continue doing so until at least the beginning of 2023. Some experts are concerned that the Fed's excessive tightening could trigger a recession.

In recent statements to CNBC, Goolsbee said that the recent slowdown in inflation indicated by some data points will likely not be sufficient to convince the Fed to significantly scale back its policy tightening.

"We'll have to determine the timing of the pivot if you're rising 75 basis points per meeting," he said after the consumer price index report for October revealed that inflation climbed less than anticipated on a monthly basis. "Until you have the core monthly inflation rate into a comfortable range, I believe the voices saying'slow down, cool off' will remain somewhat muted."

In 2023, Goolsbee will be a voting member of the Federal Open Market Committee.

In a press release announcing the nomination, the Chicago Fed described the new district president as a "leading empirical economist" whose research encompasses a broad range of themes. The statement also mentions that Goolsbee has been an advocate for different metrics of inflation.

Goolsbee dubbed the Chicago Fed “one of the crown jewels” of the central bank system.

"I am honored and thrilled to serve the public in this capacity," he said in a statement. “These have been hard, unprecedented times for the economy. The Bank has a crucial role to play in helping the District get through these and to thrive going forward.”

Governors and regional presidents who serve as voting members have rotated in and out of the Federal Reserve in recent years.

Regional presidents Lorie Logan of Dallas and Susan Collins of Boston, as well as governors Philip Jefferson and Lisa Cook, are among the more recent members.