Minneapolis Fed president Narayana Kocherlakota will step down from his post in 2016, when his term expires.
Kocherlakota took over the bank in 2009.
In a statement on the bank’s website he said, “I have been honored to play a role in shaping the response to that dire situation. While challenges lie ahead for the Federal Reserve System, the state of crisis has passed, and I have decided not to continue my service into a new term.”
Kocherlakota is the most dovish of all the Fed chiefs, and has frequently been the sole dissenter at FOMC meetings, favouring more accommodative policy than the Fed has pursued.
This morning, a BNP note summed up Fed uncertainty going into the next few years, as multiple Fed presidents plan to retire:
Kocherlakota is currently a voting member of the FOMC but is not scheduled to rotate back as a voter until 2017. The same goes for Dallas Fed president Fisher and Philadelphia Fed president Plosser, both of whom are scheduled to retire in March 2015. We rate Kocherlakota as the most extreme dove on the FOMC, and Fisher and Plosser as two of the most extreme hawks.