U.S. Federal Reserve Vice Chair Stanley Fischer said on Wednesday he will step down from his position at the Federal Reserve in October. Fischer is a central bank veteran and his resignation helps open the way for President Trump to reshape the direction of which the central bank is heading. The 73-year-old Vice Chairman wrote a letter to Trump expressing his intention to resign eight months before his term was set to expire and cited personal reasons in the letter.
<img src="https://media.8ch.net/file_store/968058b565c78a94aff13292c3ac723d42f326e7b442636ad4d03716f92ac4da.jpg" style="max-height:640px;max-width:360px;">
<span style="margin-top:15px;rgba(42,51,6,0.7);font-size:12px;">Credit: Brendan McDermid</span>
Fischer also said in the letter to Trump that job growth had returned to the United States and that "steps to make the financial system stronger and more resilient" had been taken. After his departure, there will be as few as three sitting members depending on whether the Senate confirms Trump's nominee Randal Quarles before Fischer leaves. There seems to be a growing sense of confusion over the Federal Reserve's future, even Janet Yellen's term is set to expire in February.
Even though Trump has spoken highly of Yellen, he also has left the door open to replacing her with his top economic adviser Gary Cohn. Carl Tannenbaum, chief economist at Northern Trust in Chicago, says "This will certainly leave us all scrambling to understand the new calculus of the Board." In the meantime, it is possible that Fischer's departure in October could could decrease the chances of a Fed interest rate hike later this year.
Tips? Info? Send me a message!