Obama-era Federal Reserve appointment Stanley Fischer (Vice Chairman) has resigned from his position, effective mid-October. The significant resignation adds even more to US President, Donald Trump’s to-do list—now with 4 out of 7 vacant Fed positions to fill.
Fischer’s term was not to end until June 2018, however consensus was that he‘d resign before that time. While expected, the resignation came much earlier than predicted.
The departure introduces new unpredictability for the country‘s direction for monetary policy in the long-term.
In the official letter, Fischer gave some positive observations and predictions directed towards Trump derived from his time on the Board. According to Fischer, “the economy has continued to strengthen, providing millions of additional jobs for working Americans,“ and that its direction contributed to a “stronger and more resilient“ financial system.
Trump has already nominated Randal Quarles, a former senior Treasury official under the G.W. Bush administration, for Fed Governor. However, the nomination is still pending hearing in the Senate.
Also, Janet Yellen‘s term as Chair expires in February. While President Trump has been expressed interest in re-nominating her, Economists are favoring a new candidate being proposed for her position, according to a recent Bloomberg poll.
Fischer has served in important positions of major economic entities around the world such as Citigroup, the IMF, the World Bank, and the Bank of Israel – as well as having taught at the much-revered MIT where he mentored entire generations of economists.