The Federal Reserve Bank of Atlanta announced on Monday that it has formally launched the selection process for its next president, as current chief Raphael Bostic confirmed his retirement upon the expiration of his term in late February.

Under the Federal Reserve Act, regional Fed presidents are selected by directors not affiliated with regulated financial institutions, with final approval required from the Federal Reserve Board in Washington. The Atlanta Fed stated that its search committee will be chaired by board chairman Gregory Haile, CEO of nonprofit Upwardly Global, and will solicit broad public input throughout the process.

Bostic, who announced last month he would step down when his term ends on February 28, became the first African American to lead a regional Fed bank when he took the helm in 2017. Known for his relatively moderate stance in monetary policy discussions, his views carried notable influence within the Fed system. However, his tenure was later clouded by questions about financial transactions, though an internal watchdog report last year found no evidence he traded using nonpublic information.

Should a successor remain unconfirmed by Bostic's departure, First Vice President and COO Cheryl Venable will serve as interim president.

The development comes just after the Fed Board unanimously voted last week to reappoint all 11 other regional Fed presidents for five-year terms, temporarily easing market uncertainty about future FOMC composition. Under the rotation schedule, the Atlanta Fed president will next hold an FOMC voting seat in 2027.

With Bostic's impending exit, markets and investors will closely scrutinize the policy leanings and professional background of his successor.