Janet Yellen's No. 2 at the Fed is stepping down

Ann Santiago
September 7, 2017

Federal Reserve Vice Chairman Stanley Fischer's decision to resign will leave President Donald Trump with a Fed Board of Governors that has more vacancies than occupants.

He cited "personal reasons" in a resignation letter Wednesday to Trump for leaving on or around October 13. During my time on the Board, the economy has continued to strengthen, providing millions of additional jobs for working Americans. "Informed by the lessons of the recent financial crisis, we have built upon earlier steps to make the financial system stronger and more resilient and better able to provide the credit so vital to the prosperity of our country's households and businesses".

Fischer was appointed to the board by President Obama in 2014 for a term as vice chairman that was set to expire in 2018. His unexpected departure adds to a leadership vacuum at the top of the Fed as it navigates a hard path.

Trump in July chose the investor and former Treasury Department official Randal Quarles to join the Fed as vice chair for supervision in a further sign the White House may promote continuing deregulation of the financial sector.

The resignation of Stanley Fischer, 73, creates another vacancy on the council that oversees the USA central bank. "We will miss his wise counsel, good humor, and dry wit", Fed Chair Janet Yellen said in a statement.

Goodfriend, 66, worked for more than 20 years at the Richmond Fed and is seen as a leading hawkish voice on monetary policy. He is a former vice chairman of Citigroup, the former first deputy managing director of the International Monetary Fund, and the former chief economist of the World Bank.

Before joining the Board, Mr. Fischer was governor of the Bank of Israel, from 2005 to 2013.

At MIT in the 1970s, Fischer taught both Ben Bernanke, who decades later became Fed chair, and Mario Draghi, now the president of the European Central Bank.

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