Mr. Dudley, the vice chairman and a permanent voting member of the Federal Open Market Committee, was known for his role in the Fed’ bond-buying campaign known as quantitative easing. Before joining the New York Fed in early 2007 as executive vice president and head of the Markets Group, he spent two decades at Goldman Sachs, where he was the chief economist.
“The American economy is stronger and the financial system safer because of his many thoughtful contributions,” said Janet L. Yellen, the Federal Reserve chairwoman, in a statement.
Last week, President Trump nominated Jerome H. Powell, a Fed governor since 2012, to replace Ms. Yellen as head of the central bank once her term expires early next year.
Unlike the Federal Reserve chairman, regional Fed bank presidents are not chosen by the president. They are selected by a committee composed of members of the Fed’s board of directors who are not affiliated with financial institutions. The selection is subject to approval by the Fed board in Washington.
Mr. Dudley called his time at the New York Fed “a dream job” in a statement on Monday, and said he had “every confidence in the institution.”