Goldman Sachs executive Beth Hammack to head Cleveland Fed

Beth Hammack, a Goldman Sachs executive and longtime financial industry leader, will become the next president and CEO of the Federal Reserve Bank of Cleveland, leading the central bank’s district. Announced Wednesday.

Hammock will succeed Loretta Mester, who will retire on June 30. She will officially become the 12th president of the Cleveland Fed on Aug. 21, with First Vice President Mark Mader serving as interim president.

“It is a great honor to serve the 4th District and the nation in our mission to foster a strong and stable economy where all Americans have the opportunity to thrive,” Hammack said.

“I look forward to meeting the people who work and live in the Fourth District and representing them. [Federal Open Market Committee] “I can’t wait to serve as their neighbor and to lead the bank’s talented team as they deliver on our important mission every day,” she added.

Hammack takes over at a critical time for the central bank: The Cleveland Fed president will have a vote on the Federal Open Market Committee, which will consider when and whether to cut interest rates in the coming months.

The FOMC raised interest rates from near zero in March 2022 to a range of 5.25% to 5.5% last July and has kept rates at their 23-year high at each meeting since.

In December, Fed Chairman Jerome Powell hinted at a rate cut as soon as 2024, but a slight rise in inflation has pushed that date further out this year, with the majority of interest-rate traders now expecting the first rate cut not to come until November. CME FedWatch Tools.

Hammack has worked in finance, capital markets and risk management for more than 30 years, most recently serving as co-head of global finance at Goldman Sachs, where he joined as an analyst in 1993 and became partner and co-head of U.S. cash interest rates trading in 2010, according to his LinkedIn profile.

A graduate of Stanford University, Hammack holds degrees in quantitative economics and history.

“Beth has a deep understanding of financial markets and the monetary policy communication process, expertise in leading complex business lines and a proven commitment to mission-focused work,” said Heidi Gartland, chair of the Cleveland Fed’s chairman search committee and chief government and community relations officer at University Hospitals.