Philly Fed's #2 to head Cleveland Fed

The Federal Reserve Bank of Philadelphia. (Joseph Kaczmarek / Associated Press)

Lorretta J. Mester, executive vice president of the Federal Reserve Bank of Philadelphia and veteran head of the regional Fed's research economists, is leaving town midyear to serve as the new head of the Federal Reserve Bank of Cleveland.

Mester, who has written extensively about bank regulation, consumer transaction and other basic banking subjects, will among her other duties oversee Pennsylvania's largest bank, PNC Financial Services Group, which is located in the Cleveland Fed's district. (Philadelphia's large banks have all been sold to outside companies.)

She will also represent western Pa., Ohio, eastern Kentucky and the counties around Wheeling, W. Va., to the Fed bosses in Washington, and rotate on and off the Federal Reserve Board of Governors, which currently includes her recent boss, Philly Fed President Charles I. Plosser, who leans libertarian. Mester is a graduate of Columbia's Barnard College, collected her PhD from Princeton, and teaches at the University of Pennsylvania's Wharton business school. Cleveland Fed's announcement here, American Banker article here.