St. Louis Federal Reserve Bank President James Bullard, one of the most hawkish members of the central bank since it started it aggressive rate-hiking campaign, is stepping down.

Bullard is leaving his position as president and CEO of the St. Louis Fed to become the inaugural dean of the Mitchell E. Daniels Jr. School of Business at Purdue University next month, the bank announced Thursday.

While he'll be available in an “advisory capacity” to the Fed until Aug. 14, Bullard has recused himself from his role on the central bank's committee that determines the direction of interest rates and other monetary policy.

“It has been both a privilege and an honor to be part of the St. Louis Fed for the last 33 years, including serving as its president for the last 15 years,” Bullard said in a statement. “This is an outstanding organization with staff in every area of the Bank bringing their passion, integrity and a deep sense of purpose to our mission of promoting a healthy economy and financial stability."

Bullard has been among the Fed policymakers who've taken an aggressive stance toward interest rate increases as the central bank took on the task of reducing the hottest inflation in four decades.

Beginning with its first hike in March 2022, the Fed lifted its benchmark interest rate to about 5.1%, its highest level in 16 years, before forgoing a hike at its meeting of policymakers last month.

On Wednesday, the U.S. government reported that inflation at the consumer level rose 3% in June from a year earlier, marking its lowest point since early 2021, though it remains above the Fed’s 2% target.

Kathleen O’Neill Paese, vice president and chief operating officer of the St. Louis Fed, has taken over Bullard's post on an interim basis while the bank's board searches for a permanent successor.