Susan Collins Becomes First Black Woman to Lead a Fed Bank

The Federal Reserve Bank of Boston named Susan Collins as the next chief, making her the first Black woman to ever lead a regional Fed bank. 

It brings long-overdue diversity to Fed leadership. Fed policymakers and outside observers have stressed the importance of diversifying Fed leadership, which would make it more reflective of America itself. Research also shows that a wider range of viewpoints improves decisions. 

Benjamin Dulchin, campaign director for Fed Up, a policy advocacy group, called it a “historic step” for the Fed. Dulchin said that Dr. Collins has the deep expertise that the Fed will need in order to provide an economic recovery for all. 

The Boston Fed is one of 12 regional Fed banks and members of the Fed Board set U.S. monetary policy. The Fed Board is all-white. Of the other Fed bank presidents, three are women, and two are nonwhite men. 

President Joe Biden has nominated three new Fed governors, and if the Senate confirms them, it will make the Fed’s top leadership the most diverse it’s ever been in its 108-year existence. 

Collins will begin weighing in on Fed policy a few weeks after she starts her job on July 1. It is anticipated that by then the Fed will be tightening monetary policy in order to fight inflation, rising interest rates, and shrinking its balance sheet. 

Collins has an academic background and is currently the University of Michigan’s provost. She is a professor of public policy and economics and holds a Ph.D. in economics. She is well0known by monetary policymakers. She served as a director at the Chicago Fed for close to a decade. Her academic career tends to focus on emerging markets, exchange rates, and trade. 

In her new role, Collins will help set monetary policy and will oversee the Boston Fed’s banking supervision.