New York Fed picks John Williams as its new president

  • Current San Francisco Fed President John Williams will take over the same role at the New York Fed, effective June 18.
  • In the past, Williams has conveyed a moderate stance on monetary policy and supported the central bank’s guidance of three or four rate hikes in 2018.

The Federal Reserve Bank of New York announced Tuesday that it has selected current San Francisco Fed head John Williams as its next president. He will replace outgoing president William Dudley starting June 18.

Williams, 55, has spent most of his career at the Fed, and is considered to have moderate views on monetary policy. In recent comments, he supported the three or four rate hikes currently being signalled by the Federal Reserve for 2018.

Among Williams’ chief responsibilities as New York Fed president will be the oversight of large financial firms as current Fed chairman Jerome Powell weighs the pace of rate hikes.

“After a thorough process, my fellow search committee members and I felt that John best fulfilled the criteria we’d identified as well as the feedback we’d received through our public outreach efforts,” Sara Horowitz, chair of the New York Fed’s board of directors and co-chair of the search committee, said in a statement. “John cares deeply and is committed to the dual mandate and has led extensive work on the U.S. labour markets and employment.”

As an extension of his new job, Williams will serve as vice chairman of the Federal Open Market Committee (FOMC). In the past, he’s suggested an overhaul to how the Fed handles the signalling of its monetary policy, with options including a higher inflation target.

Williams has a Ph.D in economics from Stanford, where he studied under famed economist John Taylor, as well as an MS from the London School of Economics, and an BA from Cal-Berkeley.

“I am honored to have the opportunity to lead the Federal Reserve Bank of New York and to represent the diverse needs and economic challenges of all people living and working in the Federal Reserve’s Second District and as a member of the Federal Open Market Committee,” Williams said in a statement. “I look forward to joining the talented team of New York Fed colleagues and to carrying out the unique responsibilities entrusted to us to protect the economic prosperity and financial stability of the United States’ economy.”

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