Fed vicepresident Stanley Fischer tenders resignation

Lucy Bush
September 7, 2017

Federal Reserve Board Vice Chairman Stanley Fischer's surprise decision to resign in mid-October will enable President Trump to more rapidly reshape the Fed, paving the way for it to roll back post-crisis reforms.

His resignation letter, which was addressed to U.S. president Donald Trump and was also published by the Federal Reserve, cited "personal reasons" as the cause of his departure.

Fischer has been a member of the Fed's Board of Governors since May 2014.

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Fischer's term was set to expire in June 2018 and his tenure on the Fed was slated to end in January 2020. His term as vice-chair was set to expire next year.

Fischer has been highly influential at the Fed. "We will miss his wise counsel, good humor, and dry wit", Fed Chair Janet Yellen said in a statement.

Nominated by President Barack Obama, Fischer worked with Chairman Janet Yellen to lift the USA out of the financial crisis and recession through a strategy involving low interest rates and money printing. Before the central bank started raising interest rates in late 2015, he was a key figure in the Fed's communication to the public and investors.

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Fischer joined the Fed after serving as a governor of the Bank of Israel, from 2005 to 2013, according to BoardEx, a relationship mapping service of TheStreet Inc. Previously, he was vice chairman of Citigroup Inc.

In July, Trump appointed Randal Quarles to the Fed's Board of Governors.

As for Yellen's replacement, NEC Cohn will likely take the Fed Chief job if he wants it and can, with Trump, trim the number of PhD economists in favor of more business executives like former Goldman Sachs President Cohn. Once Trump's remaining three nominees are named and confirmed, his picks will represent a majority of the Fed board. The Fed is talking about an interest rate hike, but the real bombshell is reining in the $4.5 trillion United States federal budget. Rate increases are a sign that the economy is improving.

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Other reports by Info About Network

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