By Katy Burne 

John Williams, who Monday became president of the Federal Reserve Bank of New York, said he starts the job with a determination to expand trust in the institution and stressed that economic expansions are when regulators need to be most vigilant.

"I start my first day with a deep commitment to securing the stability of our financial system and prosperity for our economy," he said in a statement released by the New York Fed at the outset of the bank's conference on improving banking culture.

Solid economic growth, a strong labor market and inflation near the Fed's target are "all exactly what I want to see," he said in closing remarks at the conference.

But he said it is exactly the notion that conditions are getting stronger that worries him most. "There's a risk of complacency setting in" and "liquidity can look like everything's coming up roses, even when an uncomfortable reality lies beneath," he said, calling the need to focus attention on banking culture "urgent."

Mr. Williams said he "can think of no better place from where to continue to support the nation's economic well-being" than the New York Fed, one of 12 regional outposts of the central bank.

Before joining the New York Fed, Mr. Williams presided over the San Francisco Fed, succeeding former Federal Reserve Chairwoman Janet Yellen as leader of the regional bank in 2011. He previously served as the San Francisco Fed's research director, reporting to Ms. Yellen. At the New York Fed, he succeeds William Dudley, who retired Sunday.

Mr. Williams said the New York Fed "plays a unique role in the Federal Reserve System," because it implements monetary policy, manages key payments systems, and supervises some of the largest and most complex financial institutions. He said he takes the responsibility of the role "with the utmost seriousness."

During his tenure as the New York Fed's 11th president, Mr. Williams said the public can expect openness and transparency in explaining the bank's actions, objectivity when it comes to making monetary policy recommendations, and a commitment to the diverse economic needs of families and businesses in its district.

"Throughout, I will strive to explain my reasoning, particularly when my views may differ from those of others," he said.

Mr. Williams led the San Francisco Fed when Wells Fargo & Co. came under scrutiny from the central bank for its phony accounts scandal.

Write to Katy Burne at katy.burne@wsj.com

(END) Dow Jones Newswires

June 18, 2018 17:46 ET (21:46 GMT)