Fed Appoints McCullough Director of New ‘Division of Transparency’

This note was originally published April 01, 2015 at 08:44 in Early Look



The Federal Reserve Board has announced the appointment of Keith R. McCullough as Director of the newly formed Division of Transparency, effective immediately. In addition to this newly formed role, Mr. McCullough will also serve as a special senior advisor to the Federal Open Market Committee (FOMC).


"Mr. McCullough is a highly regarded economist and market practitioner. His firm Hedgeye has robust expertise in macroeconomic modeling, monetary policy design, and policy communications," said Stanley Fischer, vice chairman of the U.S. Federal Reserve.  "We look forward to his expertise in a wide range of monetary policy decisions and recommendations to the FOMC's subcommittee on transparency. Hopefully he will also enable us to finally have some degree of accuracy in our economic projections.”


As senior special adviser to the Board, Mr. McCullough will contribute his expertise to the monetary policy decision-making process and help support related work of the Federal Open Market Committee (FOMC). In particular, McCullough will assist in the work of the subcommittee on accountability of financial projections. Mr. McCullough has been an avid Fed observer and critic for almost two decades.


Fed Appoints McCullough Director of New ‘Division of Transparency’ - f1


As a division director, Mr. McCullough will advise the Board and the FOMC on the conduct of monetary policy, including open market operations and the discount window.  In recent years, he has played a central role in critiquing the FOMC's monetary policy process.  In particular, he has wondered, perhaps too rationally, why the FOMC has maintained its zero interest rate policy (ZIRP) despite near full U.S. employment. 


"Keith has had a long and distinguished career in finance. And while he has often referred to me as the “Mother of All Doves,” I am grateful to have the benefit of his advice and counsel as division director,” said Federal Reserve Board Chair Janet L. Yellen. “We all look forward to continuing to work together in this important, new role."


Mr. McCullough founded Hedgeye Risk Management in 2007 during the throes of the financial crisis and has served as its CEO since. He is also co-chair of the NYC Bi-Policy Center, the only Washington, D.C.-based think tank actively promoting bipartisanship to address the key challenges facing the United States since 2013.


“The truth of the matter is that I likely would never have opted to go advise “The Bernank” had he called when he was chair. But when Chair Yellen called, I felt like I needed to go serve the best economic interests of this fine nation. It’s for my kids. And my kids’ kids. And the kids of my kids’ kids.” McCullough said.


Mr. McCullough does not have a PH.D in economics, has never served the Federal Reserve in any fashion, and was never a professor at any fancy University with a French sounding name.  In addition to creating the “ESPN of Finance” at Hedgeye, he has also coached his son’s Mite Hockey Team, the Mid-Fairfied Rangers, to the Connecticut state finals.


When reached for comment long time Fed critic Peter Schiff responded simply, “Buy Gold!”


For media inquiries, contact dholland@hedgeye.com

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