On March 16, 1985, he took office as the eleventh chief executive of the Federal Reserve Bank of Minneapolis, and retired from the position on September 1, 2009.

Stern joined the Federal Reserve Bank of Minneapolis in January 1982 as senior vice president and director of research.

Stern's previous experience includes seven years at the Federal Reserve Bank of New York, where his last assignment was as manager of the domestic research department.

He also serves on the board of the Carlson School of Management at the University of Minnesota, and he is the treasurer of the Minneapolis Club.

In 2004 Stern co-authored with Ron J. Feldman Too Big to Fail – The Hazards of Bank Bailouts with the foreword written by Paul A.