Fed President Bullard of St. Louis announces his resignation, effective August.

The St. Louis Federal Reserve has announced that Jim Bullard will be stepping down from his role as president, effective August 14th.

He is leaving the position to become the dean of Purdue University’s Mitchell E. Daniels, Jr. School of Business, starting from August 15th. It has been stated that Bullard has recused himself from his monetary policy responsibilities on the Federal Reserve’s Federal Open Market Committee, as well as other related duties and public speaking engagements.

In a statement, Bullard expressed his gratitude and stated, “It has been both a privilege and an honor to be a part of the St. Louis Fed for the past 33 years, including serving as its president for the last 15 years. I am also thankful to have had the opportunity to work alongside such dedicated and inspiring colleagues across the Federal Reserve System.”

The St. Louis Fed has revealed that they will be enlisting the help of a national executive search firm to aid in the recruitment process for Bullard’s successor.

This announcement has come approximately two weeks before the upcoming policy meeting of the Federal Reserve. According to the CME Group’s FedWatch tool, traders are predicting a 92.4% likelihood of a 25 basis point rate hike.

In a previous statement made in May, Bullard emphasized the need for rates to be increased by an additional half-point to combat inflation. Since then, the Fed has raised rates by 25 basis points.

Bullard warned, “The risk with inflation is that it does not decrease and return to a lower level. Considering the strength of the labor market, now is an opportune time to resolve this issue and avoid a repeat of the 1970s.”

It should be noted that Bullard does not hold a voting position on the policymaking committee this year.