Inside Kevin Warsh’s selection process for the next Atlanta Fed president

The search for a new president of the Federal Reserve Bank of Atlanta — now entering its seventh month — is being watched carefully for how new Fed Chairman Kevin Warsh intends to reshape the interest rate-setting Federal Open Market Committee.

That process has shifted as Warsh has begun to put his stamp on the Fed. The Fed was considering candidates for Atlanta under then-Chair Jerome Powell, but the selection process was paused in part to allow Warsh to oversee the appointment, two people familiar with the hiring process told CNBC, speaking on condition of anonymity to discuss the ongoing search. Michael Faulkender, a former senior Treasury official under President Donald Trump, was subsequently considered for the position in Atlanta, the people said.

It isn’t clear if Faulkender is still a candidate.

The Atlanta Fed declined to comment on Faulkender or who is under consideration.

“Our committee is conducting a thorough and deliberate search for the next president of the Federal Reserve Bank of Atlanta. We maintain our focus on selecting the best candidate to serve the Sixth District, while protecting the integrity of the process,” Greg Haile, chair of the Atlanta Fed board of directors and presidential search committee, said in an emailed statement. “We will provide relevant updates about this important leadership role when appropriate.”

The Fed and Faulkender declined to comment.

Warsh has promised “regime change” at the Fed, encompassing a rethink of rate-setting and balance sheet policy, communications and what data the Fed uses to gauge the economy. But he inherits a Fed whose membership was shaped by Powell and the chairs before him. Warsh has few immediate opportunities beyond the Atlanta job to bring allies onto the FOMC.

He recently announced five task forces to study what he wants to change. Those will be staffed by outside experts. No current Fed governors or presidents will be included on those task forces.

Warsh comes in facing questions about how independent he’ll be from Trump. But Warsh didn’t acquiesce at his first FOMC meeting last week to Trump’s demands for rapid rate cuts. 

Instead Warsh defied many analysts’ expectations with a hawkish press conference that prompted markets to raise their projections for interest rates.

Warsh could use the Atlanta appointment to further defy expectations and assert his independence from the administration.

The 12 regional Fed presidents are chosen through a back-and-forth process between the directors of the bank and the Board of Governors in Washington. That arrangement is the result of the Federal Reserve Act’s effort to balance the power of the Board in Washington and the influential New York Fed with additional regional representation. 

Typically, the local bank’s directors hire a search firm and come up with a list of candidates. After feedback from Washington, the directors then choose a president who is acceptable to the Board and the chairman. The process can involve input from the Board and from congressional representatives and advocacy groups.

Bank directors often have their own agendas. For example, the Kansas City Fed has elected a string of hawkish candidates going back decades. They have racked up the most dissenting votes on the FOMC against easing interest rates.

The Atlanta Fed’s position has been open since February, when Raphael Bostic stepped down at the end of his term. He had announced his departure in November. He became the first African American to head a district bank in 2017 under pressure from Congress and outside interest groups for the Fed to diversify the ranks of its leadership.

Executive-search firm Heidrick & Struggles is overseeing the current search. The firm didn’t respond to a request for comment.

Warsh may eventually be able to reshape the committee. The Supreme Court will soon rule on whether Governor Lisa Cook can continue in her job, after Trump attempted to fire her last year. Powell holds a seat on the Board of Governors that expires in January 2028.

Three other regional bank presidents will be up for replacement in 2028: John Williams of New York, Mary Daly of San Francisco and Tom Barkin of Richmond.

There is already a quiet campaign to urge Warsh to line up a replacement for Williams, CNBC has reported.

The president of the New York Fed has a permanent vote on the FOMC. The 11 other regional bank presidents, including Atlanta’s, vote on a rotating basis. The Atlanta Fed president will vote on the FOMC in 2027. The Atlanta bank is currently run by interim President Cheryl Venable.

Powell expressed concern in his final press conference as chair about the possibility of political interference with the Fed’s regional presidents. Were the regional presidents to be removed because of their policy views, “that would be the beginning of the end of, of the Fed’s ability to, to make monetary policy independently,” Powell said in April.

Warsh at his confirmation hearing in April said that although he had called for “regime change” at the Fed, he didn’t mean that to include replacing the regional bank presidents.

Faulkender was deputy Treasury secretary from March to August 2025 and is now a finance professor at the University of Maryland. Faulkender, who served briefly acting commissioner of the International Revenue Service, resigned his Treasury position after Trump soured on him, the Wall Street Journal reported.

The ultimate choice for Atlanta will be closely scrutinized for any sign of loyalty to or independence from the Trump administration.

Two current regional Fed presidents, Austan Goolsbee of Chicago and Neel Kashkari of Minneapolis, previously held political appointments in different administrations.