Collins will be one of twelve regional heads who vote on the direction the Fed's powerful economic policy. This is a crucial role, as high inflation and concerns about the ongoing pandemic continue to weigh on the U.S. Economy.
Collins will be the first Black woman (after Raphael Bostic who started running the Atlanta Fed in 2017) to head a Federal Reserve Bank.
Collins is a Ph.D-trained economist who holds degrees from Harvard University and the Massachusetts Institute of Technology. He is currently the provost and executive vice President for academic affairs at University of Michigan.
This leadership change comes just months after Eric Rosengren, the former Boston Fed President, was engulfed in a trading scandal at the central bank. Despite public warnings about contagion in the real estate markets during this pandemic, Rosengren executed large transactions in REITs and other securities in 2020. Bloomberg first reported the news.
Rosengren, who was suffering from a worsening kidney condition, resigned his position on September 30.
Kenneth Montgomery was the bank's first vice-president and will continue his role until Collins starts her term on July 1.
"I look forward helping the Bank and System fulfill the Fed's dual mandate."
Collins stated in a statement that Congress is aimed at achieving maximum employment and price stability.
Collins, who has been a Chicago Fed director for nine years, is a familiar face to the Federal Reserve. She is also a familiar face in Fed circles, speaking frequently at Fed-organized events.
Collins stated at a conference in 2019 that the Fed must be flexible. Collins supported the Fed's efforts to review its policy framework as the economy changes.
Susan Collins, a professor of public policy at the University of Michigan, stated to Yahoo Finance that "when things are strong is when it's time to ensure your roof isn’t leaking."