The Dallas Federal Reserve has named a new president to succeed its former one, who left the post last year following a controversy over stock trading.
Lorie K. Logan will serve as head of the central bank branch, according to an announcement Wednesday.
Central bank watchers know Logan’s name well, as she currently serves as head of the New York Fed’s pivotal trading desk. Her official title is manager of the System Open Market Account, meaning she oversees the Fed’s massive $9 trillion balance sheet of bonds and other assets.
Logan will take on her new duties officially on Aug. 22.
“I look forward to engaging with business and community leaders across the Eleventh District and representing all of the hard-working people of the district at the FOMC,” Logan said. “I am excited about moving to Texas and becoming involved in the community.”
In addition to running the SOMA operation, Logan also is also the New York Fed vice president. That makes her no stranger to the interest rate-setting Federal Open Market Committee meetings. Logan also represents the Fed at the Bank for International Settlements.
The move comes after Robert Kaplan stepped down from the post last October. That followed a scandal across the Fed in which multiple high-ranking officials engaged in big-dollar equity trading that coincided with the the early retirement of Kaplan and Boston Fed President Eric Rosengren.
A joint statement from Thomas J. Falk and Claudia Aguirre, who headed the presidential search committee, said the group was looking for someone who could handle the needs of the district, which spans Texas, northern Louisiana and New Mexico.
“We found all of that and more in Lorie Logan,” the statement said. “She has been a successful leader of the Markets Group at the New York Fed, and her deep financial markets background and expertise in monetary policy and the financial system make her well qualified to contribute in a meaningful way to the monetary policy issues of the FOMC.”
“Lorie understands how our nation’s current economic challenges and the Fed’s actions impact all Americans, and will work toward a stronger economy for all,” the committee leaders added.
Logan comes to the Fed at a critical time as policymakers seek to tame inflation running close to 40-year highs. The FOMC already has approved two interest rate hikes this year totaling 75 basis points and is expected to continue through the year.
“In terms of monetary policy, we anticipate that Logan will be in the sensible center,” Krishna Guah, head of global policy and central bank strategy for Evercore ISI, said in a note. “Under her leadership Dallas will not likely stand out either as atypically inflation hawkish or atypically financial stability hawkish as has been the case at times in the past.”
Fed Chairman Jerome Powell welcomed Logan to the fold, calling her “a a trusted colleague and dedicated public servant whose remarkable skill and experience with complex financial markets has informed our decisions and helped implement monetary policy to support the U.S. economy.”
Since Kaplan left, Meredith Black, who is first vice president at the Dallas Fed, has been serving the interim role.
Logan’s appointment was the second big Fed personnel move of the week. On Tuesday, the Senate confirmed Lisa Cook as a governor, which makes her the first Black woman to hold the position.
Correction: Lorie Logan’s first name was misspelled in an earlier version. Also, Robert Kaplan retired from his position early, which was mischaracterized.
