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 in its seventh month, is being watched carefully for how new Fed Chairman Kevin Warsh plans to reshape the Federal Open Market Committee, which sets interest rates.

This changed as Warsh began to make his mark on the central bank. The Fed had been considering candidates for Atlanta under the direction of then-Chair Jerome Powell, but the selection process was partially paused to allow Warsh to oversee the appointment, two people who spoke to CNBC on condition of anonymity to discuss the ongoing search told CNBC. Michael FaulkenderTrump, a former top Treasury official under President Donald Trump, was later considered for the position in Atlanta, sources said.

It is unclear whether Faulkender is still a candidate.

The Atlanta Fed declined to comment on Faulkender or who was being evaluated.

“Our committee is conducting a comprehensive and informed search for the next president of the Federal Reserve Bank of Atlanta. We remain focused on selecting the best candidate to serve the Sixth District while maintaining the integrity of the process,” Greg Haile, chairman of the Atlanta Fed board and presidential search committee, said in an emailed statement. “We will provide updates on this important leadership role when appropriate.”

The Fed and Faulkender declined to comment.

Warsh promised the Fed “regime change” that would include rethinking interest-setting and balance sheet policy, communications and what data the central bank would use to measure the economy. But he inherits a Fed whose membership was shaped by Powell and the chairs before him. Warsh has few opportunities beyond the Atlanta job to bring allies to the FOMC.

He recently announced five working groups to study what he wants to change. These will be appointed by external experts. These task forces will not include current Fed governors or presidents.

Warsh faces questions about how independent he will be from Trump. However, Warsh did not agree to Trump’s demands for rapid interest rate cuts at the first FOMC meeting last week.

Instead, Warsh defied many analysts’ expectations with a hawkish news conference that encouraged markets to raise their forecasts for interest rates.

Warsh could use his Atlanta assignment to further defy expectations and assert his independence from management.

The 12 regional Fed presidents are selected through a mutual process between the bank’s governors and the Board of Governors in Washington. This arrangement is a result of the Federal Reserve Act’s effort to balance the power of the board of governors in Washington and the influential New York Fed with additional regional representation.

Typically, executives at the local bank hire a search firm and compile a list of candidates. After feedback from Washington, executives choose a chairman who is acceptable to the board and the president. The process may include input from the board, congressional representatives and advocacy groups.

Bank managers often have their own agendas. The Kansas City Fed, for example, has named a series of hawkish candidates going back decades. They garnered the most dissenting votes against lowering interest rates at the FOMC.

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

Executive search firm Heidrick & Struggles is leading the current search. The company did not respond to a request for comment.

Warsh may eventually reshape the committee. The Supreme Court will soon decide whether Gov. Lisa Cook can keep her job after Trump tried to fire her last year. Powell has a seat on the Board of Governors that expires in January 2028.

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

There is already a quiet campaign encouraging Warsh to name Williams’ successor, CNBC reported.

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

In his final news conference as chairman, Powell expressed concern about the possibility of political interference with the Fed’s regional chairmen. If regional chairmen were removed because of their policy views, “it would be the beginning of the end of the Fed’s ability to make monetary policy independently,” Powell said in April.

At his confirmation hearing in April, Warsh said that although he called for “regime change” at the Fed, that did not include replacing regional bank presidents.

Faulkender served as assistant secretary of the Treasury from March to August 2025 and currently serves as a professor of finance at the University of Maryland. Faulkender, who briefly served as acting commissioner of the Internal Revenue Service, resigned from his Treasury post after Trump became harsh towards him. The Wall Street Journal reported.

The final choice for Atlanta will be closely scrutinized for whether it signals loyalty to or independence from the Trump administration.

The two current regional Fed presidents, Austan Goolsbee of Chicago and Neel Kashkari of Minneapolis, had previously been political appointees in different administrations.

Correction: Faulkender briefly served as acting commissioner of the Internal Revenue Service. An earlier version misstated the name of the agency.