By Nicole Goodkind

Anna Paulson has been chosen as the next president and CEO of the Federal Reserve Bank of Philadelphia, succeeding Patrick Harker at a time of heightened economic uncertainty and scrutiny of the Federal Reserve's political independence.

The central bank is navigating a complex moment. Trade tensions and tariff threats have cast a shadow over the growth outlook and complicated the bank's task of maximizing employment while keeping inflation in check. Markets remain volatile over the timing of interest-rate cuts, and President Donald Trump has repeatedly complained about Fed policy, saying Thursday that the "termination" of Chair Jerome Powell can't come soon enough.

In that environment, Paulson represents a consensus pick to take the place of Harker, who will retire at the end of June. She is widely known and respected inside the system and steeped in its culture.

Paulson will participate in Federal Open Market Committee meetings starting in July. She will become a voting member of the rate-setting committee in 2026.

Currently the executive vice president and director of research at the Federal Reserve Bank of Chicago, Paulson, who is 60, has more than 20 years of experience within the Fed.

Paulson helped launch the Chicago Fed's Insurance Initiative, which focuses on financial stability issues in the industry. She received her Ph.D. in economics from the University of Chicago and taught at Northwestern's Kellogg School of Management.

She will be the 12th president of the Philadelphia Fed and the first woman to fill the role. The bank's board of directors, led by search committee chair Anthony Ibargüen, conducted a nationwide search before unanimously recommending her appointment.

"I am honored to serve as the next president of the Federal Reserve Bank of Philadelphia," Paulson said in a statement. "I look forward to meeting people throughout the Third District and leading the Philadelphia Fed team who are deeply committed to fostering the stability, integrity, and efficiency of the nation's monetary, financial, and payment systems."

Attention may soon turn to who is next to retire, and who might take their places. No other regional Fed presidents have publicly announced plans to step down, but several are nearing mandatory retirement age.

Under Fed policy, regional bank presidents must retire at 65 unless appointed after 55, in which case they can serve up to 10 years or until age 75, whichever comes first. That puts Thomas Barkin, who heads the Richmond Fed; John Williams, New York; and Mary Daly, San Francisco, on watch. All three are expected to reach their term limits by 2028.

Write to Nicole Goodkind at nicole.goodkind@barrons.com

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April 22, 2025 10:12 ET (14:12 GMT)

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