Loretta J. Mester

The American central banking system is tasked with overseeing the world's most important economy. From a political standpoint, they have been given a so-called "dual mandate," which is to ensure low unemployment in combination with stable prices, meaning low inflation. In the US, inflation reached 9.1% in 2022 during the COVID-19 pandemic, the highest level since 1981. As the President and CEO of the Federal Reserve Bank of Cleveland, Loretta Mester stood in the eye of the storm. 
  
The US central banking system is organised into 12 regional banks, each managing its part of the country and providing information to headquarters in Washington. Mester served as President and CEO of the Federal Reserve Bank of Cleveland from 2014 to 2024, where she was also a member of the Fed's interest rate-setting body – the Federal Open Market Committee (FOMC). 
  
The Cleveland Fed covers the state of Ohio, western Pennsylvania, eastern Kentucky, and the so-called panhandle of West Virginia. In her role, Mester was responsible for 1,000 employees, and in addition to the daily operations of the bank, she contributed to decisions on whether the Fed's interest rate should be raised or lowered. The voting role rotates between the regional banks. Through this work, Mester has become known as an "interest rate hawk" within the Fed leadership, meaning she is willing to raise rates in order to curb inflation despite the potential consequences this may have on the US economy. 
  
Mester began her career as an economist at the regional central bank in Philadelphia in 1985, where she worked her way up to become executive vice president and director of research. From there, she was appointed to her current position in Cleveland. Her career has been shaped by her background as a researcher, and she has published several articles on topics such as inflation and central bank leadership. 
  
The now-outgoing director holds a degree in mathematics and economics from Barnard College at Columbia University, in addition to a master's degree and Ph.D. in economics from Princeton University. 
  
At the SKAGEN Funds New Year Conference 2025, you will have the opportunity to gain a unique insight into the financial system when one of the US's rate hawks takes the stage.