William Dudley, Chief of New York Fed, to Retire Next Year

William Dudley, Chief of New York Fed, to Retire Next Year

William C. Dudley, the president of the Federal Reserve Bank of New York and a forceful advocate for cultural change at large financial institutions, will retire from his position in mid-2018, the bank announced on Monday.
Mr. Dudley, 64, will step down before the end of his 10-year term expires in January 2019 to pave the way for a successor, the bank said.
Whoever fills the role is expected to be a key bulwark against Wall Street misbehavior as the Trump administration moves to loosen regulatory oversight of banks.
Mr. Dudley succeeded Timothy F. Geithner at the bank’s helm amid a deep recession in 2009 after President Barack Obama appointed Mr. Geithner as Treasury secretary.

Mr. Dudley participated in a worldwide push to reform benchmark rates after a scandal involving the manipulation of the London Interbank Offered Rate, or LIBOR.
Mr. Dudley, the vice chairman and a permanent voting member of the Federal Open Market Committee, was known for his role in the Fed’ bond-buying campaign known as quantitative easing. Before joining the New York Fed in early 2007 as executive vice president and head of the Markets Group, he spent two decades at Goldman Sachs, where he was the chief economist.
“The American economy is stronger and the financial system safer because of his many thoughtful contributions,” said Janet L. Yellen, the Federal Reserve chairwoman, in a statement.
Last week, President Trump nominated Jerome H. Powell, a Fed governor since 2012, to replace Ms. Yellen as head of the central bank once her term expires early next year.

Unlike the Federal Reserve chairman, regional Fed bank presidents are not chosen by the president. They are selected by a committee composed of members of the Fed’s board of directors who are not affiliated with financial institutions. The selection is subject to approval by the Fed board in Washington.
Mr. Dudley called his time at the New York Fed “a dream job” in a statement on Monday, and said he had “every confidence in the institution.”