MINNEAPOLIS, September 30, 2009—Dr. Narayana Kocherlakota (Nair-ah-yah-nah Koach-er-lah-ko-tah – Hear the pronunciation [.wav] ) will become president and chief executive officer of the Federal Reserve Bank of Minneapolis effective Oct. 8, 2009. The announcement was made by Jim Hynes, chairman of the Board of Directors of the Federal Reserve Bank of Minneapolis.
Dr. Kocherlakota is currently a professor of economics at the University of Minnesota, where he previously chaired the economics department, and a consultant to the Federal Reserve Bank of Minneapolis.
“We are very pleased that Narayana Kocherlakota will be leading the Federal Reserve Bank of Minneapolis,” said Hynes, who is also executive administrator of the Twin City Pipe Trades Service Association, St. Paul, Minn. “This Bank has a strong history of leadership in economic research, and Dr. Kocherlakota will certainly continue that tradition. He is one of the most respected macroeconomists in the field today, and not just because of his intellectual contributions but also because of his professional standing and reputation for collaborating with others. Dr. Kocherlakota is a relentless optimist who works hard to find pragmatic solutions. All of us on the Board of Directors and at the Bank look forward to working with him.”
Prior to his recent tenure at the University of Minnesota, Dr. Kocherlakota has been a professor of economics at Stanford University, an associate professor at the University of Iowa and an assistant professor at Northwestern University. Dr. Kocherlakota entered Princeton at age 15 and graduated four years later (1983) with an A.B. in mathematics. He received his Ph.D. in economics from the University of Chicago in 1987 on the topic of pricing financial assets, incorporating new kinds of consumer preferences and analyzing how risky payoffs influence attitudes. Dr. Kocherlakota has published more than 30 articles in academic journals. Read Dr. Kocherlakota’s biography for additional information.
“For an economist who has spent his career working on issues related to macroeconomics, monetary policy and finance, there can hardly be a better job than president of a Federal Reserve Bank,” Dr. Kocherlakota said. “That is especially true of the Federal Reserve Bank of Minneapolis, which has made so many important contributions to economic thinking, beginning in the 1970s and continuing under Gary Stern’s outstanding leadership. I look forward to continuing that tradition and also to working with my new colleagues on the Federal Open Market Committee. As I learned during my tenure as a consultant and Research staff member, this Reserve Bank and the entire Federal Reserve System are staffed by dedicated public servants, and it is an incredible honor to lead the employees of the Federal Reserve Bank of Minneapolis.”
Dr. Kocherlakota is married to Barbara McCutcheon, who holds a Ph.D. in economics from the University of Chicago.
As president of the Federal Reserve Bank of Minneapolis, Dr. Kocherlakota will lead one of the 12 regional Reserve Banks that, with the Board of Governors in Washington, make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government. Dr. Kocherlakota will have overall responsibility for these functions and will represent the Ninth Federal Reserve District at meetings of the Federal Open Market Committee, the policymaking body within the Federal Reserve that sets monetary policy for the nation.