Entrance to the Atlanta Federal Reserve Bank Georgia State Government Building.
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The Atlanta Fed’s search for a new president is now in its seventh month, with close attention being paid to how new Fed Chairman Kevin Warsh plans to restructure the Federal Open Market Committee, which sets interest rates.
That process changed when Mr. Warsh started putting his stamp on the central bank. The Fed had been considering candidates for Mr. Atlanta under then-Chairman Jerome Powell, but parts of the selection process were paused to allow Mr. Warsh to oversee the appointment, two people familiar with the hiring process told CNBC on condition of anonymity. Michael Faulkender, a former senior Treasury official in President Donald Trump’s administration, was then considered for the Atlanta post, the people said.
It is unclear whether Mr. Volkender is still a candidate.
The Atlanta Fed declined to comment on Mr. Faulkder or anyone else under consideration.
“The committee is conducting a thorough and careful search for the next president of the Atlanta Fed. We remain focused on selecting the best candidate for District 6 while protecting the integrity of the process,” Greg Hale, chairman of the Atlanta Fed’s Board of Directors and Presidential Search Committee, said in an emailed statement. “We will provide updates regarding this important leadership role as needed.”
The Fed and Mr. Faulkder declined to comment.
Warsh promised “systemic changes” at the Fed, including rethinking interest rate settings, balance sheet policy, communications and what data the central bank uses to measure economic activity. But he is taking over the Fed membership formed by Mr. Powell and previous chairmen. Mr. Warsh has little immediate opportunity to bring allies to the FOMC beyond his role in Atlanta.
He recently announced five task forces to consider what he wants to change. These will be staffed by external experts. These special committees do not include current Fed directors or governors.
Mr. Warsh faces questions about how independent he will be from Mr. Trump. However, Governor Warsh did not acquiesce to President Trump’s call for rapid interest rate cuts at the first FOMC meeting last week.
Instead, Mr. Warsh, contrary to many analysts’ expectations, held a hawkish press conference that prompted the market to raise interest rate expectations.
Mr. Warsh could use his appointment in Atlanta to further defy expectations and assert his independence from the administration.
The 12 regional Fed presidents are selected through communication between the Fed’s directors and the Washington board. The deal is the result of the Federal Reserve Act’s efforts to balance the power of the Washington board and the influential New York Fed with additional regional representation.
Typically, local bank directors hire a research firm to create a list of candidates. Following feedback from Washington, the board will select a president acceptable to the board and chairman. This process may include input from the Board of Directors as well as Congressional representatives and advocacy groups.
Bank directors often have their own agendas. For example, the Kansas City Fed has been electing hawkish candidates for decades. They have the most votes against interest rate easing on the FOMC.
The Atlanta Fed position has been open since February, when Rafael Bostic resigned at the end of his term. He announced his retirement in November. In 2017, he became the first African-American to head a local bank, following pressure from Congress and outside interest groups on the Federal Reserve to diversify its leadership.
Executive search firm Heidrick & Struggles is overseeing the current search. The company did not respond to requests for comment.
Mr. Warsh may eventually be able to reorganize the committee. The Supreme Court is expected to rule soon on whether Governor Lisa Cook, who President Trump tried to fire last year, can remain in office. Mr. Powell’s seat on the board expires in January 2028.
Three other regional bank presidents are scheduled to succeed him in 2028: John Williams of New York, Mary Daley of San Francisco, and Tom Birkin of Richmond.
CNBC reports that a quiet campaign is already underway to urge Warsh to replace Williams.
The president of the New York Fed has a permanent vote on the FOMC. The presidents of 11 other regional banks, including Bank of Atlanta, will vote on a rotating basis. The Atlanta Fed president will vote at the 2027 FOMC meeting. Atlanta Bank is currently run by interim president Cheryl Venable.
In his final press conference as chairman, Powell expressed concern about possible political interference with the Fed’s regional presidents. Chairman Powell said in April that if regional presidents were removed for their policy views, “that would be the beginning of the end of the Fed’s ability to make independent monetary policy.”
At his confirmation hearing in April, Mr. Warsh called for “systemic change” at the Fed, but said he did not intend that to include replacing regional bank presidents.
Mr. Faulkder served as Deputy Secretary of the Treasury from March to August 2025 and is currently a professor of finance at the University of Maryland. Faulkender briefly served as acting head of the Internal Revenue Service, but resigned from his position at the Treasury Department following complaints from President Trump, The Wall Street Journal reported.
Atlanta’s final selection will be heavily scrutinized for any signs of loyalty or independence from the Trump administration.
Two of the current regional Fed presidents, Austan Goolsby (Chicago) and Neel Kashkari (Minneapolis), previously served as political appointees in different administrations.
Correction: Mr. Volkender briefly served as Acting Commissioner of the Internal Revenue Service. A previous version incorrectly listed the agency name.
