Federal Reserve Bank of New York President William Dudley will retire next year, the central bank announced Monday, opening another key position within a Fed system that is already slated for rapid change under President Trump.
"I am extremely proud of the work we have done in New York, and as a system, from our efforts to help the nation navigate the financial crisis to beginning the process of normalizing the balance sheet to our work on reforming the culture of the financial services industry," Dudley said.
Dudley became president of the New York Fed during the depths of the financial crisis in 2009, replacing Timothy Geithner when he became treasury secretary under former President Barack Obama.
The New York Fed has special status within the Fed system because it carries out the central bank's monetary decisions in the markets and oversees New York banks. Its president is a permanent voting member in the Fed's monetary policy committee.
The New York Fed said it had begun a nationwide search for Dudley's successor. The next head of the regional Fed bank will be chosen by its directors, subject to approval by the Fed's Board of Governors in Washington.
The central bank already is facing a major reshaping. Trump last week nominated current Fed Governor Jerome Powell to replace Chairwoman Janet Yellen in February and is expected to fill out several more slots at the board of governors in the months ahead. He has one appointee serving at the board: Randal Quarles, the vice chairman for supervision, responsible for coordinating regulation of the banking system.
Dudley, a former economist for the megabank Goldman Sachs, played a major supporting role in developing and carrying out the Fed's post-crisis emergency monetary policies as well as its re-regulation of the financial system.