Going from IB *to* Fed Reserve?
Hello! I've seen topics on the reverse (Fed to IB) but not any on the above. Have you or do you know of anyone who has gone from IB to working at the Fed? What kind of roles did they take? What kind of skills would be transferable to working at the Fed? I think it would be cool to do both, and to me it would make more sense to start in IB and then move over than have to break into IB later on. But I don't know much yet about roles at the Fed and how they may (or may not) differ from someone working in M&A. Just interested in seeing what people have to say. Thanks!
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?? I doubt an analyst at some bank has enough insider info to negatively impact the country through an entry-level position in the Fed, but if I'm wrong please correct me
You know who calls other people narcs? Narcs do, narc.
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Why the * * around the to?
I interned at the FRBNY and there were an incredible amount of people I met who went from private sector to the Fed. I met two IB people specifically who transferred. One had worked as an analyst like 30 years ago, went back to get a PHD, and works as an economist now. The other had done two IB summer analyst stints but graduated and decided to work as a research analyst at the Fed instead.
The biggest issue is these are two different skill sets/career paths.
IB you basically only need an undergrad degree, and work on M&A transactions within your assigned space. The Fed will want you to have published economics research, a masters, and potentially PHD, and most of your work is very macro research on economic policy. Just a different game than IB, and also a fraction of the salary given that it's government work which is why most don't make the jump over.
Meh. This isn’t really true. For research assistantship positions, a BA/MA are all you need to be competitive. No need for published research work at that level. It’s only if you want to actually set and pursue a research agenda/be an “economist,” that you need a PhD. Also, it’s not just macro stuff at the Fed banks. There are micro sections/groups at all, or at least most of, the banks too.
What exactly do people do when they work at the Fed? Curious to know more about this.
Depends on which bank, and also is a bit different from the Board in DC. I knew a couple economists that would help with rates decisions for the FOMC, but they’re not always “on the rounds” (I think that’s the term they called it, ahead of FOMC decisions). Other than that, they produced a fair amount of research and overall they seemed very academic in my opinion. Other parts of the Board deal with supervision and regulation of bank operations, which is much more regulatory in nature. In the last 5 years, the Board has tried to modernize their data governance and database systems, not sure how much progress has been done in that though so I’m going to assume it’s still a semi-shitshow.
Also, despite being quasi-government, salaries are higher than the regular federal GS pay scale, though still below street obviously, but then again I’m not very familiar with specifically econ salaries at firms. For the Board (and I assume the district banks as well), the main role is their Research Assistant program which is a 2 year gig. I saw a mix of both undergrad only and MAs. To be hired as an economist, as others have mentioned PhDs are essentially required.
Most of the 12 reserve banks focus on two things: economic research and banking supervision. Research is fairly obvious. Supervision is basically all about ensuring 'the safety and soundness of the financial system' by making sure that all the banks in their district aren't doing something crazy like breaking anti-money laundering regulations.
The NY Fed does a ton more though. In addition to research and supervision (supervision is the largest group at the NY Fed since they have huge teams dedicated to monitoring each of the BBs and dozens of other financial institutions), the NY Fed conducts all the FOMC's open market operations, monitors market stuff, manages the discount window, helps settle payments between financial institutions, etc., Lots of stuff that no one ever thinks about. It was an incredible organization to work for tbh. Lots of smart people and (surprisingly) incredibly diverse. If you're looking for something more 'meaningful' in the finance world, it's a great opportunity. I know people can disagree with what the Fed does, but the average Fed employee is genuinely trying to make some positive difference in this world. Also, since it's technically a government org, hours are AMAZING. They really stick to the 40 to 50 hour work week, and working long hours is looked down upon. (I'll say Research Group is the exception to that though. Apparently, RAs work IB analyst hours, but those people are crazy for econ and will more-or-less have guaranteed acceptances to any top phd or masters program.) Comp sucks in comparison to the private sector, but they try to be as competitive as they can be, and you will be paid significantly more than most other public sector jobs. Also, they offer really good tuition reimbursement, which can be a major plus if you're interested in pursuing another grad degree.
I am grateful for the fed printing more money than god and allowing the markets to act like a cocaine fuelled night in Vegas
I remember hearing that for the NY Fed specifically, it's more competitive to get a job there than the Board down in DC, largely due to candidates' profiles.
Is this the Public Service Loan Forgiveness program as with other federal jobs?
You need a really good background as a mechanic so that you can fix the money printer
You sound like a chach
Neel Kashkari went from Wharton to GS IB to politics, look up his path
Has anyone done IB to SEC
I heard every third Friday is off? Can someone confirm?
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