Federal Reserve Bank of New York

By Michael S. Derby

NEW YORK (Reuters) – The head of the Federal Reserve Bank of New York's powerful Markets Group, Michelle Neal, is stepping down and will leave the bank in March 2025, according to a press release on Thursday.

Neal will serve as a senior advisor at the bank until she departs, transitioning to a role in the private sector. She oversees the part of the New York Fed that interacts with the financial sector and sits on the bank's Executive Committee.

While the search for Neal's successor is ongoing, Anna Nordstrom, currently head of the Domestic and International Markets Function in the Markets Group, will act as the interim leader.

Neal joined the New York Fed in spring 2022 after several leadership roles in the financial sector. John Williams, the bank's president, remarked that Neal "has overseen significant initiatives – including the major technological investment in the Federal Reserve’s open market operations – to transform and innovate the critical work that we do."

Neal's departure is not expected to have significant effects on central bank operations, as monetary policy is managed by Roberto Perli, the manager of the Fed's System Open Market Account.