Kimball in running to lead Atlanta Fed

The Romney administration's chief economic development official is on the short list to become president of the Federal Reserve Bank of Atlanta, the second-largest branch of the institution that sets national monetary, banking, and interest rate policy.

Ranch Kimball, 49 , disclosed in a Nov. 15 letter to Governor Mitt Romney that he was going to meet with the Fed bank's board about the job last Monday. In the letter, he also recused himself from discussing Federal Reserve policies that could affect the Massachusetts Division of Banks , which he oversees, to avoid conflicts of interest.

If he wins the job, Kimball would become the second Federal Reserve bank president with deep ties in Boston's business community. Cathy L. Minehan , a New Jersey native who became president of the Boston Fed in 2001 , is active in Boston's civic community and often seeks the counsel of local banking executives on important matters, executives said.

"Clearly, people, meaning Fed presidents, will pick up the phone and say 'What are you hearing?' to people they know. You use your contacts," said Daniel J. Forte , the president and chief executive of the Massachusetts Bankers Association .

The job for which Kimball is a candidate would put him in charge of an organization of similar size to the one he currently runs, but with far greater scope. As the state's economic development chief since 2004 , he's had 22 agencies with more than 2,500 employees, and four cabinet secretaries reporting to him.

Prior to holding that job, he was managing director of Kissinger McLarty Capital Group , the private equity and investment arm of the company founded by former US Secretary of State Henry Kissinger and Thomas F. McLarty III , a former Clinton administration chief of staff. He also spent time as a consultant for the Boston Consulting Group , and ran endurance races as a semipro athlete in the late 1990s.

During his time in office, Kimball has worked to improve the business climate and streamline permitting for new projects. This year, he helped persuade Bristol-Myers Squibb Co. to build a $660 million manufacturing plant at the former Fort Devens Army base, a project that is expected to bring up to 550 jobs to Massachusetts. At the same time, other major employers such as Fidelity Investments have kept employment in Massachusetts relatively stable while expanding operations elsewhere. In August, for example, Fidelity disclosed plans to spend $100 million to add 2,000 jobs in North Carolina.

The Atlanta Fed president oversees a staff of about 2,150, but is responsible for managing a bank that encompasses a six-state region in the Southeast. That bank, along with the 11 other regional branches of the system, sets monetary policy for the country, sets and oversees nationwide banking regulations, and dispenses cash to the nation's banks. Also, Federal Reserve presidents are rotating members of the Federal Open Market Committee , which sets interest rates.

Kimball declined to comment. Pierce Nelson , a spokesman for the Atlanta Fed, said he could not talk about specifics of the search for a new president to replace Jack Guynn , who retired Oct. 1 .

Nelson said the board wanted a candidate with a grasp of monetary policy, the financial services industry, and experience running a complex organization with several functions. After the board makes its selection, that candidate would face confirmation by the full seven-member Fed governors board before taking over the job.

Keith Reed can be reached at reed@globe.com.