Fed's Fischer Announces Resignation, to Leave Mid-October
- Author: Joey Payne Sep 07, 2017,
Sep 07, 2017, 1:58
Fischer's departure comes as U.S. President Donald Trump prepares to reshape the Fed board, which now has three vacancies. I'm personally grateful for his friendship and his service.
Last month in an interview, Trump said he was considering either re-nominating Yellen for a second term as Fed chair or replacing her.
The resignation means Trump will get to nominate candidates this fall for the Fed's top two jobs, putting his stamp on the central bank. His term as vice chairman expires on June 12, 2018. 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.
Fischer, 73, has been a member of the board since May 2014. "In a recent interview with the Financial Times, Fischer was highly critical of Republican efforts to loosen the post-crisis regulatory regime". This latest vacancy comes as Yellen's future leading the central bank remains under considerable doubt. Before that, he was vice chairman at Citigroup. He also taught economics at MIT for more than 20 years-former Fed chairman Ben Bernanke was a student.
Three spots on the seven-member board were already vacant.
In July, Trump appointed Randal Quarles to the Fed's Board of Governors. He helped shape regulatory policy keeping banks in check and accountable, and he stands by the Fed's approach even as Trump considers alternatives.
With an academic approach to policymaking, born of professorship at the Massachusetts Institute of Technology and University of Chicago, Fischer had contributed a more moderate perspective on interest rate hikes and voted for the Federal Open Market Committee's monetary policy action. Before that, Fed officials hadn't voted for a rate hike in almost a decade.
The US central bank is slowly raising interest rates as the economy grows and unemployment falls.