Goolsbee to head Chicago Fed

WASHINGTON — Austan Goolsbee, former top economic advisor to President Barack Obama, is slated to be the next president and CEO of the Federal Reserve Bank of Chicago. 

Goolsbee is currently a professor of economics at the University of Chicago's Booth School of Business, and previously served as chair of the White House Council of Economic Advisers from 2010 to 2011. 

Goolsbee will have a significant role in economic policy — he will sit next year on the Fed's Federal Open Market Committee, which sets the Fed's benchmark interest rate. It's a critical time for those decision makers, who are weighing how to battle high inflation with the pain that accompanies economic tightening. 

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"The Federal Reserve Bank of Chicago has always been one of the crown jewels of the Fed system and the district it represents is the backbone of the American economy," Goolsbee said in a press release. "I am both humbled and excited to serve the public in this role. These have been challenging, unprecedented times for the economy. The Bank has an important role to play in helping the District get through them and to thrive going forward."

He'll replace Charles Evans, who reached the Fed's mandatory retirement age. Evans spent 15 years as the Chicago Fed's president and chief executive officer. Goolsbee will be the 10th president of the Chicago Fed. 

Goolsbee will join the Chicago Fed at a critical time — as the central bank tries to maintain its independence and restore trust after a series of scandals and political intrigue. Although many advocates wanted a more diverse set of Fed presidents, there's also been pressure from Republicans such as the Senate Banking Committee's ranking Republican, Sen. Pat Toomey of Pennsylvania, who has floated ideas such as subjecting the Fed's 12 regional bank presidents to Senate approval and consolidating or disbanding the regional banks altogether. 

Goolsbee will start his new position on Jan. 9.