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Philly Fed CEO Harker successor search underway

October 24, 2024 |By Katie Tabeling

||| — Federal Reserve Bank of Philadelphia CEO Patrick Harker is stepping down after he has served since 2015. Harker has made several appearances in Delaware to offer his forecast on the economy in recent years. | DBT FILE PHOTO BY JACOB OWENS

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PHILADELPHIA — The Federal Reserve Bank of Philadelphia President and CEO Patrick Harker will retire in June 2025, and efforts are well underway to find a successor that will represent Delaware and the surrounding Philadelphia region.The Philadelphia Fed Board of Directors have already launched a nationwide search for its next leader, including hiring executive recruiting firm Spencer Stuart and holding hybrid listening sessions to hear feedback from and field questions from the public. Nominations and referrals are also open for qualified candidates for Spencer Stuart and the search committee’s consideration. Harker is stepping down due to rules on length of service and age requirements. Generally, regional Fed presidents must retire at 65, although those who are appointed after 55 can, at the option of the board, serve 10 years or until they hit 75, whichever comes first. Harker turned 65 last year, and was appointed to his second term in 2021. Harker, who also served as the president of University of Delaware for five years, has led the Philadelphia Fed since 2015, overseeing monetary policy, bank and payment system supervision and community outreach. He also served on the Federal Open Market Committee, which sets the direction of the Federal Reserve System’s monetary policy — like setting benchmark interest rates, which has been recently cut after a string of raising interest rates. The committee also weighs in on matters like buying and selling United States Treasury securities and the nation’s money supply. Members rotate every year, and Harker had served last in 2023, and his successor will not have a seat at that table until 2026. But what may be the most critical part of the job is serving as an independent voice for the Third Federal Reserve District, which covers eastern Pennsylvania and Philadelphia, southern New Jersey, and Delaware. “Imagine all the audiences you will have to talk to. You’re going to Washington D.C. and talking to national leaders about what you see in your district and how that ultimately impacts your decisions on interest rates and other kinds of decisions,” said Sharmain Matlock-Turner, a member of the search committee and the Deputy Chair of the Philadelphia Fed Board of Directors. Matlock-Turner and the chair of the Philadelphia Fed Board of Directors and the search committee Anthony Ibargüen and Spencer Stuart consultant Thomas Daniels, held a public engagement forum earlier this month on the new search. “It’s important to [have a leader] who is able to be independent and say, 'This is the information we see,’” Matlock-Turner said. “Even though there may be pressure coming from certain constituencies, that leader needs to step away from that and say this is a place where we’re making quality decisions based on the best information.” The Philadelphia Fed also serves as an analyst of its region’s economy, measuring factors like housing prices, homeownership rates, employment figures, wages and other data points to get a clearer picture of the district— and to serve as a resource for other policy makers. Harker himself had a long career in academia, where he served as the dean at Wharton School of the University of Pennsylvania before arriving at UD. But he had also gone on several tours in the district, even talking with people during study on the current work environment, led by Philadelphia Fed researchers. That authentic curiosity to understand all the residents in the Third Distirct will set apart the candidates who may check all the boxes and those who would excel in the role, according to Ibargüen. “Pat is this great example of someone who has come from academia, where you oftentimes can influence people below you in the organization chart. Philly and the district are unique, and I think the main thing I’m looking for is authenticity,” he said. “We may not find someone who is from here or has family ties, or knows Philly … it’s got to be authentic. It can’t be fake.” While the job description shared by Spencer Stuart highlights professional or academic credentials in areas related to macroeconomic policy, it also stresses working to stay on top of economic and demographic spectrums to form judgements. For stakeholders like Jesse McCree, who sits on the Philadelphia Fed Economic and Community Advisory Council, it’s important that Harker’s replacement has the ability to bring many members of the community together as a resource. “Having that curiosity to understand the district and the people who live there, and keeping that connection to the people you’re making policy for, is critical. Someone who’s making policy is often on the balcony a lot, looking at the big picture, but they also have to be agile enough to come down and understand who they’re working with,” McCree said during the forum. For more information on the Federal Reserve Bank of Philadelphia President search, visit www.philadelphiafed.org/about-us/presidential-search