The Federal Reserve Bank of Minneapolis on Tuesday named former Treasury official Neel Kashkari its new president and chief executive officer.
The 42-year-old Kashkari's term will start at the beginning of next year. He replaces Narayana Kocherlakota, who has held the position since 2009 and announced last year he would not seek reappointment.
Kashkari, who ran for governor of California in 2014, was most recently active in the private sector as a managing director at Pimco. From 2006 to 2009, he served in the U.S. Department of the Treasury as an adviser to former Secretary Hank Paulson and then as assistant Treasury secretary.
He oversaw the Troubled Asset Relief Program in the wake of the U.S. financial crisis.
"Mr. Kashkari is an influential leader whose combined experience in the public and private sectors makes him the ideal candidate to head the Minneapolis Fed," said MayKao Hang, incoming chair of the Minneapolis Fed's board of directors.
The Minneapolis branch is an alternate member on the Fed's policy-making committee next year and a voting member in 2017. Kocherlakota, who is not currently a voter, separately said he will not participate in the Fed's December policy meeting, where Fed officials will consider their first interest rate hike in nearly a decade.
""The minutes from the meeting are not released until after my final date of December 31, and so I would not have an opportunity to comment on the final draft of the minutes," he said in a statement.
Kocherlakota has lobbied colleagues for more monetary policy easing just as most believe the economy is ready to leave behind a seven-year stint at near-zero interest rates.
— Reuters contributed to this report.