John Williams, president of the Federal Reserve Bank of San Francisco, has been chosen by the board of the New York Federal Reserve bank to be its next president, sources told CNBC.
A PhD economist, Williams is a monetary policy expert who has spent almost 25 years at the Fed. CNBC said that the New York Fed board has yet to formally nominate Williams for the role. The Federal Reserve Board of Governors must also approve the nomination.
Although the search for a replacement for current President William Dudley initially sought diverse candidates, sources familiar with the matter said William’s monetary policy expertise became an important factor given the White House’s failure to nominate a vice chairman for the Federal Reserve.
The president of the New York Fed not only supervises the banks in the nation’s financial capital but also serves as vice chairman of the Federal Open Market Committee, which is the Fed’s rate-setting body.
CNBC said that since Fed Chairman Jerome Powell is not an economist, the board of the New York Fed felt a monetary policy expert was the ideal option. It may take several months for a Fed vice chairman to be seated given that no one has been nominated yet.
Democrats in Congress and outside interest groups have pressured the Fed to select a woman or a candidate of color and one with deep expertise in financial regulation. While three women assumed policy-making roles in 2014, none of them have been among the seven appointed as Fed bank presidents or Fed governors. However, an African-American and an Indian-American are among those seven, according to CNBC.