Published: Thu, September 07, 2017
Money | By Oscar Reynolds

Fed Vice Chairman Stanley Fischer submits resignation for "personal reasons"

Fed Vice Chairman Stanley Fischer submits resignation for

In an update posted to the central bank's website at 1545 BST, the central bank said that Fischer, aged 73, would be stepping down from the Board of Governors of the Federal Reserve System on or about 13 October.

"It's been a privilege to serve on the Federal Reserve board and most especially to work alongside Chair Yellen", Fischer said, citing the improvements in the economy and financial system in recent years.

Fischer's term was set to expire in June 2018 and his tenure on the Fed was slated to end in January 2020. Quarles' nomination is still pending before the Senate.

In a note to clients on Wednesday, Paul Ashworth, chief U.S. economist at Capital Economics, wrote that Fischer's resignation "presumably lowers the odds of [Yellen] being nominated for a second term [as Fed Chair]".

His Board leadership was informed by experience as governor of the Bank of Israel, vice chairman of Citigroup, deputy managing director of the International Monetary Fund and chief economist of the World Bank. The two have butted heads over regulatory reform, and her defense of the current regulatory environment in last month's keynote address.

Trump criticized Yellen's low-interest rate policies during the campaign but has tempered his comments since the election.

Mr. Fischer has been a close ally of Fed Chairwoman Janet Yellen, whose term in the top job expires in early February.

But he also said he was still considering other candidates.

"Capital markets generally hate transition. and it appears that we will now have wholesale change at the Fed which is the last independent and competent part of U.S. policymaking apparatus", Schlossberg said.

Mr Fischer is a former economics professor at the Massachusetts Institute of Technology.

Another potential nominee for a board seat is Robert G. Jones, the chairman and chief executive of Old National Bancorp.

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