The Federal Reserve Bank of New York announced today that David M. Cote, Executive Chairman of Honeywell International Inc., has stepped down from its Board of Directors, effective March 17, 2018.
"It has been an honor for me to serve on the board of an institution so dedicated to increasing the prosperity of all Americans," said Mr. Cote.
Mr. Cote joined the Board in 2014 as a Class B director, and was reelected for a second three-year term in December 2016. Class B directors are elected by the member banks to represent the public, and may not be affiliated with banks and related financial institutions. Mr. Cote's decision comes as he is considering pursuing new business opportunities that could affect his eligibility to serve as a Class B director, after having stepped down as CEO of Honeywell in 2017.
"I respect Dave's decision and am grateful for his active and thoughtful contributions as a fellow board member," said Sara Horowitz, Founder and Executive Director of the Freelancers Union and Chair of the New York Fed's Board of Directors. "His vast experience running a large, complex organization gave him unique insights into many different sectors of the national and international economy, which have benefitted the New York Fed greatly."
"I want to thank Dave for his service to the Bank. Dave's perspective and business acumen were invaluable in shaping our assessment of how the Bank needs to continue to evolve so we can be effective in meeting our public policy objectives," added William C. Dudley, president and CEO of the New York Fed.
About the Reserve Banks' Boards of Directors
The Federal Reserve Act of 1913 requires each of the Reserve Banks to operate under the supervision of a board of directors. Each Reserve Bank has nine directors who represent the interests of their Reserve District and whose experience provides the Reserve Banks with a wider range of expertise that helps them fulfill their policy and operational responsibilities. The nine directors of each Reserve Bank are divided evenly by classification: Class A directors represent the member banks in the District; Class B directors and Class C directors represent the interests of the public. The directors of the Reserve Banks act as an important link between the Federal Reserve and the private sector, ensuring that the Fed's decisions on monetary policy are informed by actual economic conditions.