Thomas Jordan, chairman of the Governing Board of the Swiss National Bank (SNB) for over a decade, has announced his departure at the end of September 2024. "Having met the various challenges of recent years now is the right time for me to step down. It has been a great privilege to serve the SNB and the interests of the country as a whole," said Jordan in a statement.
Under his leadership, the SNB navigated through tumultuous economic waters, including the eurozone crisis and the pandemic-induced financial instability, with a blend of conventional and innovative monetary policies. Jordan's tenure was marked by a series of decisive and sometimes controversial measures aimed at maintaining Switzerland's financial stability and combating inflation, such as the abrupt end to the minimum exchange rate policy in 2015 and the introduction of negative interest rates.
Jordan, a Harvard-educated economist, joined the SNB in 1997, rising through the ranks to become its Chairman in 2012. His approach was characterized by a deep understanding of the intricacies of monetary policy, a commitment to the bank's independence, and a cautious yet proactive stance on financial issues. His leadership saw the SNB's foreign currency reserves swell to nearly a trillion dollars, a testament to the central bank's aggressive market interventions.
The departure of such a pivotal figure raises questions about the future direction of the SNB, especially in a global economic environment fraught with challenges. Jordan's successor will inherit a central bank that is well-respected internationally, thanks to its effective monetary policies and innovations, such as the development of digital currency for financial markets. However, the new chair will also face the ongoing task of balancing inflation control with economic growth, managing the SNB's massive balance sheet, and navigating the complex landscape of global finance.
Commenting on Jordan's decision, the President of the Bank Council, Barbara Janom Steiner, said, "I deeply regret his decision. Thomas Jordan has been a defining influence on the SNB and its monetary policy for over a quarter of a century. During his time as Chairman, the SNB has fulfilled its mandate outstandingly well."
In the short to medium term, the SNB must continue to adapt its strategies to address evolving economic conditions, including potential inflationary pressures and the impacts of geopolitical events on the financial markets. The bank's ability to maintain price stability, support economic recovery, and foster financial innovation will be critical for Switzerland's prosperity. As the SNB turns a new chapter, the guiding principles and policies established during Jordan's tenure will undoubtedly leave a lasting imprint on its future endeavors.
