Dudley Defends New York’s Special Role in Fed System

Federal Reserve Bank of New York President William C. Dudley offered his first public defense of his bank’s special role among the 12 regional Fed branches against critics who say it has too much power.

“The system is working well, and I do not see a need for any substantive changes,” Dudley said in a speech Monday in Newark, New Jersey. “I believe that the Federal Reserve System’s monetary policy responsibilities are allocated appropriately by the Federal Open Market Committee, with New York playing an important role to ensure that monetary policy is executed effectively even during periods of duress.”