Stanley Fischer steps down as Fed vice chairman

Stanley Fischer steps down as Fed vice chairman

Federal Reserve vice chair Stanley Fischer is resigning from his post at the central bank effective in mid-October, the Fed announced Wednesday.

His resignation letter, which was addressed to United States president Donald Trump and was also published by the Federal Reserve, cited "personal reasons" as the cause of his departure.

On May 21, 2014, the USA confirmed Fischer's appointment to the Federal Reserve Board of Governors. Fischer, 73, whose term was set to expire in 2020, cited personal reasons for his departure. Yellen's term expires in February. I'm personally grateful for his friendship and his service.

Janet Yellen, chair of the Fed, said: "Stan's keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations".

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Fischer has been highly influential at the Fed.

In a note to clients on Wednesday, Paul Ashworth, chief United States economist at Capital Economics, wrote that Fischer's resignation "presumably lowers the odds of [Yellen] being nominated for a second term [as Fed Chair]". Markets sometimes moved on his comments. Previously, he was vice chairman of Citigroup Inc.

Goodfriend, 66, worked for more than 20 years at the Richmond Fed and is seen as a leading hawkish voice on monetary policy. Trump has nominated Randal Quarles, an investment-fund manager and former U.S. Treasury official, as Fed's vice chiair of supervision. Once Trump's remaining three nominees are named and confirmed, his picks will represent a majority of the Fed board.

The Fed is expected this fall to begin unloading $4 trillion of debt that it racked up during the financial crisis to keep interest rates low and stimulate economic growth. Rate increases are a sign that the economy is improving.

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