Fed official heads to hedge fund

Jeremy Stein, a former governor of the Federal Reserve.
Andrew Harrer | Bloomberg | Getty Images

Another senior official from a policymaking body has signed up to be a paid advisor to a prominent hedge fund firm.

The latest to make the move is Jeremy Stein, a member of the Board of Governors of the Federal Reserve from 2012 to 2014. Stein will be a consultant to BlueMountain Capital Management, the $20.6 billion firm said in a statement Tuesday.

Stein, who remains a professor of economics at Harvard University, will advise BlueMountain on the investing implications of government economic policy, financial regulation, risk management and more, according to the firm.

"We're very lucky to have the opportunity to work with Jeremy," Andrew Feldstein, CEO of BlueMountain, said in a statement. "He has been widely recognized by leaders in government, academia and the private sector for his talent and impact. His experience, research interests and intellect will add real value to BlueMountain's investors."