President of the Philadelphia Federal Reserve Bank, Charles Plosser, will be retiring from his post next year. Known as one of the sharpest internal critics of the central bank's loose monetary policy, Plosser's retirement could possibly alleviate pressure to increase interest rates more quickly. 

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During his eight years in the Fed, he has opposed six times on policy decisions, including the last two meetings of the central bank. Plosser, who used to work as an economics professor will retire on March 1, according to the Philadelphia Fed. 

It is generally mandatory for presidents of the Regional Fed to retire after 65. However, the policies would have allowed Plosser, 66, to stay until 2016. 

"President Plosser's decision to retire is a personal one that he has carefully considered for some time," said Plosser's spokeswoman. According to his representative, the Regional Fed president will not make any post-retirement plans until he steps down from his position. 

Plosser's departure and Dallas Fed chief Richard Fisher's impending retirement could possibly change the tenor of the debate at the policy-setting Federal Open Market Committee. Like Plosser, Fisher was also frequent in the public podium. 

According to OSK-DMG economist Tom Lam, the absence of the two will be felt because of their "hardcore" views. 

Fisher, 65, has announced previously that he planned to retire in April. According to Deputy Chief Economist at TD Securities in New York, Millan Mulraine, the retirement of the two could shift the composition at the FOMC "in a less hawkish direction." 

However, Mulraine and other economists believe that the impact would not be as significantly large in scale, as the Fed banks will replace their leaders with like-minded ones. 

The successors of the two presidents will be chosen by business leaders in their respective regions. Their decision should be approved by the Washington-based Fed Board. 

Philadelphia Fed's board chairman James Nevels (Swarthmore Group founder) and regional bank board's vice chairman Michael Angelakis (Comcast Corp vice chairman) will co-chair the committee in charge of looking for Plosser and Fisher's replacements.

TagsPhiladelphia Federal Reserve, charles plosser, Federal Reserve