The Federal Reserve Bank of New York’s board of directors has begun its search for a new chief.

The board announced that it has created a search committee in light of president-elect Barack Obama’s intention to nominate New York Fed president Timothy Geithner as his secretary of the Treasury. The search committee consists of Stephen Friedman, chairman of the bank’s board of directors, and two other directors, Charles Wait and Denis Hughes.

The search committee will soon engage a national search firm to assist in the process. The committee will try to complete its work as promptly as it prudently can, it says.

In order to allow for an orderly transition, Geithner will continue to serve as president of the New York Fed for the next several weeks. His Federal Open Market Committee responsibilities will be assumed by the alternate New York Fed representative, Christine Cumming, first vice president, who will serve as a voting member of the FOMC.

IE