Bank Of Canada Deputy Governor Leduc To Leave And Join San Francisco Fed

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Deputy governor Sylvain Leduc is leaving the Bank of Canada in late July after more than two years on the job and will start working for the Federal Reserve Bank of San Francisco, the central bank announced on Wednesday.

The Bank of Canada said in a statement that Leduc will return to San Francisco with his family and resume working for the Fed there.

“Mr. Leduc was appointed deputy governor of the Bank of Canada in May 2016 and has been one of two deputy governors responsible for overseeing the bank’s analysis and activities in promoting a stable and efficient financial system,” it said.

“Before his appointment to the Bank of Canada, Mr. Leduc served as vice-president, microeconomic and macroeconomic research at the San Francisco Fed — a position he had held since 2013.”

Governor Stephen Poloz added that the central bank has benefited from Leduc’s policy “expertise” and leadership, which has had a powerful impact on the bank’s research institution.

“While we are sorry to say goodbye to this brilliant Canadian, we wish him every success in his future career in central banking,” Poloz said.

Canadian to head San Fran Fed?

As the selection process gets underway at the Bank of Canada for a new deputy governor, speculation is already high as to what role Leduc could take up at the Federal Reserve Bank of San Francisco.

Derek Holt, vice-president at Scotiabank Economics, put out a note on Wednesday titled ‘A Canadian to Head Up the San Fran Fed?’

Holt said it was “not inconceivable” to assume that Leduc was returning to San Francisco both for family reasons and to “head it up.”

“Leduc was born in Montreal, but is returning to the San Fran Fed to an as-yet-undisclosed post that may well be for the top job,” Holt said.

“Recall that [John] Williams’ post as the San Francisco’s Fed’s president is presently vacant and a search was launched in mid-May.”

But then Holt sent out a “followup” edition to his earlier note, backtracking a bit by pointing to an alternative management role change at the central bank.

“Alternatively, perhaps it is a signal that the current head of research at the San Fran Fed is about to be bumped up to president and Leduc may return to [take] her current position, or some alternate opportunity,” he said.

“One thing that is clear is that it is unusual for the Bank of Canada to have announced Leduc’s departure in the midst of the San Fran’s search and when the Fed is in black-out and just hours ahead of an FOMC [monetary policy] decision.”

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