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WASHINGTON – The Federal Reserve Bank of San Francisco has installed Mary C. Daly, a labor economist who is currently leading the research, as the new president of the institution effective October 1.
Daly, 55, will succeed John C. Williams, who became chairman of the Federal Reserve Bank of New York this year.
She is a highly respected expert on labor markets with an unusual personal background. Ms. Daly dropped out of high school at the age of 15, working in a donut shop and at Target before a friend convinced her to obtain a general education degree. She did her university education at the University of Missouri-Kansas City, and then obtained a Ph.D. from Syracuse University before joining the Fed in 1996.
As president of the San Francisco Fed, she will immediately become a voting member of the Federal Open Market Committee, which decides on monetary policy, including the need to raise or lower interest rates. She will vote in November and December as part of a regular rotation of Fed presidents. After that, she will not vote until 2021.
Ms. Daly will also be the CEO of an institution with hundreds of employees, including economics researchers and bank regulators. The San Francisco Fed oversees a vast territory encompassing much of the United States, with branches in Los Angeles, Portland, Salt Lake City and Seattle.
Tim Duy, an economist at the University of Oregon, said Daly's expertise in labor market economics fit well with the challenges the Fed faces, struggling to determine how much wage growth remains so low.
"She's a great choice for the job," said Duy. "Its empirical orientation is particularly important for the type of policy applied by the Fed."
Ms. Daly, who is openly gay, will become the third woman among the 12 presidents of the Fed's regional banks. As a senior executive of the San Francisco Fed, she has been a leading voice in addressing what she has termedcrisis of diversity "in the economic profession and at the Federal Reserve. At the San Francisco Fed, she managed to balance the recruitment of male and female research assistants.
In a statement issued by the San Francisco Fed, Ms. Daly is described as "truly honored."
"I strongly believe in the mission of the Federal Reserve and the important role we play in helping to create stable and strong economic conditions in all corners of the country that allow individuals and businesses to prosper," he said. she declared.
Ms. Daly will not participate directly in the supervision of Wells Fargo, the largest bank in the San Francisco area. While the bank's regulators are on the San Francisco Fed's payroll, the regulation of the big banks is under the supervision of the Fed's board of governors in Washington.
Ms. Daly joined the San Francisco Fed in 1996 and rose through the ranks of her research department.
Earlier this year, Ms. Daly declared her career "just somehow exploded "thanks to the opportunities it received after Janet Yellen, former Fed president, was named president of the San Francisco Fed in 2004. Ms. Yellen became vice president of the Fed in 2010 and its president in 2014.
"Just by interacting with her, answering questions, thinking about the problems as she did, I learned how to do macroeconomics and the economics of work simultaneously," she said. said Ms. Daly.
Ms. Yellen, for her part, was pleased with the appointment of Ms. Daly.
"Mary is an exceptional economist whose research sheds light on the workings of labor markets and the impacts of the Great Recession," said Ms. Yellen.
The San Francisco Fed appointed Dr. Daly to lead the research in December 2016. After she left for the New York Fed early in the year, she was widely defended as the top candidate to succeed him .
"Mary is one of our country's leading authorities on labor market dynamics," said Alexander R. Mehran, a California developer who led the San Francisco Fed's research committee. "His research in this area reflects his deep commitment to understanding the impacts of monetary and fiscal policy on communities and businesses at the local, regional and national levels."
Follow Binyamin Appelbaum on Twitter @bcappelbaum.
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