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William Dudley to retire as head of New York Fed in 2018

William C. Dudley
\William C. Dudley

William C. Dudley will retire as president and CEO of the Federal Reserve Bank of New York in mid-2018, the bank announced Monday.

Mr. Dudley joined the New York Fed in 2007 and will reach the 10-year policy term limit in January 2019. He wants to allow ample time for a successor to be installed before then, the bank said in a statement.

Federal Reserve Board Chairwoman Janet Yellen said in the statement that "the American economy is stronger and the financial system safer because of his many thoughtful contributions." She praised Mr. Dudley's "enormous contributions to the FOMC, his wise counsel and warm friendship throughout the years of the financial crisis and its aftermath."

Mr. Dudley joined the New York Fed as executive vice president and head of the markets group. In his current role and as vice chairman of the Federal Open Markets Committee, Mr. Dudley oversaw many of the Federal Reserve's emergency lending facilities and extraordinary monetary policy measures. He has also been part of the international effort following the LIBOR scandals to reform reference rates, including the creation of a new set of New York Fed-administered benchmark rates. Mr. Dudley currently chairs the Committee on the Global Financial System.

In the statement, Mr. Dudley described his roles at the New York Fed and on the FOMC as a dream job. "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," he said.

Members of the New York Fed's board of directors without bank affiliations have formed a search committee co-chaired by New York Fed Chairwoman Sara Horowitz, founder and executive director of the Freelancers Union, and Glenn Hutchins, co-founder of North Island and of Silver Lake. Executive search firms Spencer Stuart and Bridge Partners are assisting in the search, which is expected to run to the middle of 2018.