>> The selection of the second most powerful person at the Federal Reserve has kicked up a big political backlash. I'm Jonathan Spicer, Reuters' fed correspondent. John Williams, the president of the San Francisco Fed, has been named the next president of the New York Fed. Now that is a step up for Williams.
Williams replaces William Dudley, who steps down in June. Dudley was one of the architects of the Fed's crisis error response. This job is seen as the second most powerful at the Central Bank, because you have a permanent vote on interest rates. You are the eyes and ears on Wall Street on supervising the biggest banks in the country.
And you are the hand on financial markets orchestrating all of the Fed's policy decisions. Now while Williams is very liked and respected within the Central Bank, his selection is controversial on two fronts. Number one, the New York Fed directors who started the search emphasized from the very beginning that they wanted to look at a very diverse pool of candidates.
Diversity in terms of racial background, gender background and professional background, and it is not sitting too well with many senators and advocacy groups that they ended up selecting a white man in Williams. Williams is also a long-time Fed insider, which has raised some eyebrows among his critics. He has no connection to Wall Street on his resume but that has raised other concerns because the New York Fed is the conduit to financial markets.
It oversees more than 4 trillion dollars in assets and it executes all the policy decisions for the US Central Bank. John Williams starts his new job in June.