Fischer's Exit Will Leave Fed Board With More Vacancies Than Occupants

Posted September 07, 2017

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 United States central bank.

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.

In his letter of resignation, he said it was for personal reasons and did not elaborate.

In a recent speech, Yellen delivered a forceful defense of Wall Street reforms put in place after the crisis, widely seen as a direct contradiction of Trump's position which could cause her to lose favor in the White House.

He previously served as governor of the Bank of Israel from 2005 through 2013.

Fischer's term was set to expire in June 2018 and his tenure on the Fed was slated to end in January 2020.

Nichols noted that Fischer's departure leaves yet another open seat on the Federal Reserve board, which already has three vacancies in addition to the one Fischer will create.

"Fischer was the voice of experience, having been a central banker and his global standing was impeccable", JPMorgan Chase & Co.'s chief U.S. economist Michael Feroli said.

As for Yellen's replacement, NEC Cohn will likely take the Fed Chief job if he wants it and can, with Trump, trim the number of PhD economists in favor of more business executives like former Goldman Sachs President Cohn.

Now Trump will also have to find someone to fill Fischer's spot.

In a statement on Wednesday, Yellen said, "Stan's keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations". "We will miss his wise counsel, good humor, and dry wit".