Sunday, April 8, 2012
NY Federal Reserve
Markets Group Chief Brian Sack Resigns
Thu Apr 5, 2012 2:03pm EDT
By Richard Leong
(Reuters) - Brian Sack, who oversees the U.S. Federal Reserve's dealings with Wall Street and was seen as a "rising star" within the central bank, will resign from his post later this year, the New York Fed said on its website on Thursday.
Sack, 41, has been the head of the New York Federal Reserve's markets group since June 2009. His tenure includes the implementation of the central bank's unconventional measures to stabilize the banking system and pull the U.S. economy out the worst recession since the Great Depression.
"Mr. Sack will remain in his current position as head of the Markets Group and Manager of the System Open Market Account(SOMA) until June 29, 2012, to help ensure a smooth transition," the regional Fed bank said in a statement.
Sack's resignation is "entirely his own decision," and he has not lined up another job after he leaves the New York Fed, a Fed spokesman said.
Sack will be placed on leave until Sept. 14, during which time he will have limited contact with the New York Fed and no access to the bank's information, including Federal Open Market Committee and supervisory materials, the New York Fed said, adding it has started the search process for a replacement.
Sack replaced William Dudley, the current president of the New York Fed and a permanent voting member on the Federal Open Market Committee, the central bank's policy-setting group.
Sack's departure should not have a material impact on Fed policy, which is at a cross-road as U.S. economic growth has shown tentative signs of gaining momentum. But there are those inside the Fed and on Wall Street who believe more monetary stimulus, likely a third round of bond purchases nicknamed QE3, might be required to avert a rather sluggish economic recovery from being derailed.
"I don't think it will mean a lot for Fed policy. They pride themselves with having a deep bench and not dependent on any single person," said Julia Coronado, chief North America economist at BNP Paribas in New York.
Sack oversaw much of the Fed's quantitative easing measures that have ballooned its balance sheet to $2.86 trillion.
Prior to joining the New York Fed, Sack was a vice president at Macroeconomic Advisers, an economic research firm, where he conducted extensive analysis of the interactions between Fed policies, financial markets and the U.S. economy, according to the New York Fed's online biography on him.
Before joining Macroeconomics Advisers in 2004, Sack was the head of the Monetary and Financial Markets Analysis section at the Fed's Board of Governors. His responsibilities in that role included preparing materials on financial market developments for the policy-setting FOMC and briefing Board members about those developments.
BNP's Coronado, who knew Sack when they were working together at the Federal Reserve Board, said, "He was a rising star on the Board...He rose through the ranks very quickly."