Fed Vice Chairman Fischer to resign for personal reasons

Ben Bernanke Participates In IMF Research Conference
Stanley Fischer will resign on or around 13 October

07 September, 2017

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.

"The strength of the financial system is absolutely essential to the ability of the economy to continue to grow at a reasonable rate, and taking actions which remove the changes that were made to strengthen the structure of the financial system is very unsafe", Fischer said in April. Yet inflation remains below the Fed's target, complicating its future course.

Fed Chairwoman Janet Yellen will lose a close ally when Federal Reserve Vice Chairman Stanley Fischerresigns next month.

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

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

More news: Price of gas jumps again as long weekend approaches

Fischer, who was appointed in May 2014 by President Barack Obama, said he will resign from the board, effective on or around october 13. "In a recent interview with the Financial Times, Fischer was highly critical of Republican efforts to loosen the post-crisis regulatory regime".

Trump criticized Yellen's low-interest rate policies during the campaign but has tempered his comments since the election. It is possible that Trump will reappoint Yellen but National Economic Council Director Gary Cohn has also been floated as a possibility.

In the interview with The Wall Street Journal, Trump said he had a "lot of respect" for Yellen and would consider asking her to serve another term. Prior to joining the faculty at MIT, he was an assistant professor of economics and postdoctoral fellow at the University of Chicago.

"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".

More news