Late Saturday night – 10:58 p.m. EDT to be exact – CNBC reported that William Dudley, the New York Federal Reserve Bank President, will be announcing his retirement as soon as next week.
This is significant news as Dudley is a key figure in the unprecedented government response to the financial crisis. Dudley, who has been the head of the bank for the past 8 years, is forecasted to retire sometime in the spring or summer of 2019 when his predecessor is found and approved, sources familiar with the plans told CNBC.
Dudley, who is verging 65, moved into his role of president and CEO of the New York Fed when the banking system was still in the midst of the worst financial crisis of the post-war era. Prior to joining the New York Fed, which is one of the 12 Federal Reserve Banks of the U.S., Dudley was the chief U.S. economist at Goldman Sachs (NYSE:$GS).
The decision to retire should not come as a total surprise as Dudley has told a number of colleagues that he was planning on leaving the bank in 2018. However, his departure has reportedly nothing to do with President Trump’s decision to name Fed Governor Jerome Powell as the next Fed Chair.
William Dudley’s departure comes amid dramatic change at the Fed. Aside from the addition of a new Fed Chairman, there are three open seats on the seven-member Board of Governors.
It is worth mentioning that the choice of Dudley’s replacement will depend entirely on the New York Fed’s Board of Directors. Additionally, the replacement will have to be approved by the Federal Reserve Board.
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