Stanley Fischer steps down from Fed citing 'personal reasons'
- Author: Eleanor Harrison Sep 07, 2017,
Sep 07, 2017, 1:41
Stanley Fischer, the vice chairman of the Federal Reserve, announced on Wednesday (Sep 6) he will retire next month, creating a third vacancy for President Donald Trump to fill at the USA central bank.
In a letter to President Trump Mr Fischer, 73, said he would step down from the Federal Reserve "around 13 October".
The Federal Reserve will lose an influential centrist with the resignation of Vice Chairman Stanley Fischer, according to a letter sent Wednesday to President Donald Trump.
Significantly, barring any further clarification Fischer's resignation might lead markets to believe it implied a lower likelihood of Fed president Janet Yellen being renewed in her post, said Paul Ashworth, chief U.S. economist at Capital Economics.
He previously served as governor of the Bank of Israel from 2005 through 2013.
Policymakers have twice raised rates in 2017 but a third rate hike this year is seen as increasingly unlikely because inflation has failed to rise despite persistent job growth.
During his tenure at the Fed, he served as chairman of the board's committee on Financial Stability as well as the Committee on Economic and Financial Monitoring and Research. Yellen and Director of the National Economic Council Gary Cohn are among contenders to lead the central bank next year, according to US media.
He led the Fed's Committee on Financial Stability and Committee on Economic and Financial Monitoring and Research and represented the body at the Group of 20, Group of Seven and other worldwide forums. His early departure from the Fed also adds another layer of intrigue to the upcoming decision from Trump on who to appoint to the Fed's top spot; Yellen's four-year term is set to expire in February 2018. We believe the likely prospects of a Cohn Fed Chair led both Yellen and Draghi to rail against wholesale big bank deregulation at Jackson Hole in late August. I'm personally grateful for his friendship and his service.