Published: Thu, September 07, 2017
Economy | By Guillermo Lane

Fed Vice Chairman Fischer Resigns, Says Economy Is Stronger

Fed Vice Chairman Fischer Resigns, Says Economy Is Stronger

Stanley Fischer, Vice Chairman of the U.S. Federal Reserve, on Wednesday submitted his resignation for "personal reasons", adding another vacancy in the Fed's seven-member board.

Federal Reserve Vice Chairman Stanley Fischer is stepping down from his position at the central bank, having forwarded his resignation to President Donald Trump on Thursday.

Mr. Fischer, 73, was appointed to the Board by President Barack Obama for an unexpired term ending January 31, 2020.

Fischer is leaving before his term expires in June next year, and that in effect gives Trump scope to remake the leadership of the Federal Reserve Board. Quarles' nomination is still pending before the Senate.

Fischer's resignation from the Federal Reserve Board will be effective on or around October 13, according to a statement from the Fed.

He also served as governor of the Bank of Israel from 2005 to 2013. "You're talking about a lot of turnover when uncertainty about Fed policy is already high".

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The term of the current chair of the Fed, Janet Yellen, is due to end in February 2018.

Gary Cohn, Mr Trump's top economic advisor, who is Jewish, is reported to have seriously considered resigning after the President defended neo-Nazi protestors last month.

Reports earlier this year suggested that a leading candidate for one of the other vacant slots is Marvin Goodfriend, an economics professor at Carnegie Mellon University in Pittsburgh.

Mr. Fischer came to the Fed in 2014 a luminary in central banking, having taught many leading policy makers during a more-than two decade career as a professor at the Massachusetts Institute of Technology specializing in global economics.

That could make it harder for the Fed in the future to slice interest rates to ultra-low levels, as it did in 2008 and 2009, amid the financial crisis and Great Recession.

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