Warsh's Stamp on Fed: Atlanta Bank President Search Enters 7th Month

The search for a new president of the Federal Reserve Bank of Atlanta, now in its seventh month, is being closely watched for insights into how new Fed Chairman Kevin Warsh intends to reshape the interest rate-setting Federal Open Market Committee (FOMC). The selection process, initially paused to allow Warsh oversight, has considered Michael Faulkender, a former senior Treasury official under President Donald Trump, though his current status as a candidate is unclear.

The Atlanta Fed declined to comment on Faulkender or other candidates, stating a commitment to a "thorough and deliberate" search. Warsh has promised a "regime change" at the Fed, including a rethink of rate-setting, balance sheet policy, communications, and data usage. However, his immediate opportunities to install allies on the FOMC are limited, with the Atlanta position being a key appointment.

Faulkender, who briefly served as acting IRS commissioner before resigning from the Treasury in 2025, is now a finance professor. His consideration for the Atlanta Fed role has raised questions about potential loyalty to the Trump administration, though Warsh recently defied expectations with a hawkish stance at his first FOMC meeting, suggesting an assertion of independence.

The ultimate choice will be scrutinized for signs of independence from or loyalty to the Trump administration. The process involves a balance between the Atlanta Fed's board and the Federal Reserve Board in Washington, with input from various stakeholders. The Atlanta Fed president will vote on the FOMC in 2027, making this appointment strategically important for Warsh's policy agenda.

Correction: An earlier version incorrectly stated Faulkender's agency role; he was acting commissioner of the Internal Revenue Service.