Sunday, November 5, 2017

"New York Fed President William Dudley set to announce retirement: Sources"

From CNBC:
  • William Dudley, who heads the powerful New York Fed and is a member of the policy-setting FOMC, may announce his retirement as early as next week, sources tell CNBC.
  • Dudley was a key figure in managing the fallout from the 2008 financial crisis.
New York Federal Reserve Bank President William Dudley, a key figure in the unprecedented government response to the financial crisis, is expected to announce his retirement as soon as next week, according to several people familiar with his plans.

Dudley, who has has headed the bank since 2009, will likely retire sometime in the spring or summer of 2018 when his replacement is found and approved, sources told CNBC. His term ends in January 2019. A search committee has already been formed.

Dudley, who will be 65 next year, took the helm of the New York Fed when the banking system was still in the throes of the worst financial crisis of the post-war era.

He previously had headed the New York Fed's markets group, a critical job that oversees the trades and market operations required to set the Federal Funds Rate. In both positions, Dudley was a principal player in Fed decisions concerning the demise of Lehman Brothers, AIG and Bear Stearns, along with emergency measures taken by the central bank to stanch a meltdown in the financial system.

Largely under Dudley, the NY Fed was responsible for accumulating the trillions in assets the Fed purchased as part of the quantitative easing program, bringing its balance sheet up to $4.5 trillion. It is now responsible for the market operations underway to reduce the balance sheet....MORE