Architect of emergency financial programs retiring

A change is in the works at the Federal Reserve's division that shapes interest rate policy

Brian Madigan, the head of the influential Federal Reserve division who had a hand in designing emergency financial lending programs, will retire later this year after more than 30 years with the central bank, the Fed announced Monday. Madigan, whose specific retirement date wasn't announced, will remain a senior adviser to the Fed's Board of Governors. 

William English will take over as chief of the Fed's Division of Monetary Affairs on July 23. English will advise Fed Chairman Ben Bernanke, members of the Federal Reserve Board and the Federal Open Market Committee, the Fed's policymaking group on interest-rate policy. 

English began his career at the Fed in 1992 as an economist. He was appointed to the Board's official staff in 2001. He has served as deputy director of the money affairs division since February 2008. 

"Bill English brings impeccable professional and academic credentials and proven experience to an important position," Bernanke said in a statement. "His deep expertise will help the Federal Reserve navigate the challenges of the period ahead."

As the economy slowly recovers from the nation's worst recession since the Great Depression, deciding when to boost interest rates will be one of the biggest issues facing Bernanke during his second term which started in February. 

Interest rates have remained at record lows and will need to remain near zero until the economy bounces back. The Fed cut its benchmark rate to almost zero in December 2008.