Stanley Fischer To Step Down From The Federal Reserve

Geneva Matthews
September 7, 2017

Federal Reserve Vice Chairman Stanley Fischer's decision to resign will leave President Donald Trump with a Fed Board of Governors that has more vacancies than occupants.

In view of the replacement of USA economic leadership planned by President Donald Trump, however, the likelihood that Fischer would be appointed was brought into question.

The president will now have the opportunity to replace all but two members of the Board of Governors at the Fed during his current term in office. The resignation comes about nine months before Fischer's term as vice chairman was set to expire.

"The combination of his encyclopaedic knowledge of economics, outstanding judgment, quiet leadership and his perennial good humour has helped policymakers around the world to navigate one of the most challenging periods in the global economy". We expect that Dudley could be offered the Vice Chair position but believe he likely stays at the NY Fed, though Potter could assume the NY Fed President role. Yellen and Director of the National Economic Council Gary Cohn are among contenders to lead the central bank next year, according to USA media.

Fischer resignation
Janet Yellen's No. 2 at the Fed is stepping down

"Adding that, "[Fischer] represented the Board internationally with distinction and led our efforts to foster financial stability.

But with Fischer's soon-to-be-vacant seat, the president has the responsibility for nominating a candidate to the seven-member Board of Governors, and each much be confirmed by the Senate.

"Stan's keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations", Yellen said in Wednesday's statement.

Mr. Trump has nominated Randal Quarles for one of the vacancies as vice chairman for bank supervision.

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