In yet another sign of how financial regulation is rapidly changing under President Donald Trump, Federal Reserve Vice Chairman Stanley Fischer said that he plans to resign. In a brief letter, the 73-year-old cited “personal reasons” for a resignation that will occur on or around Oct. 13. But he also made clear he was proud of the new rules governing banks put in place in the wake of the financial crisis, a point of contention with the Trump administration.
“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 wrote.
Fischer’s term as vice chair was set to end next June. His term as a Fed governor ended in early 2020. In a statement, Federal Reserve Chairwoman Janet Yellen said the Fed would miss Fischer’s “wise counsel, good humor and dry wit.” She said “Stan’s keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations.”
Fischer, a heavyweight in interest-rate policy over the last 40 years, was nominated to the role by President Barack Obama. During the 1990s, he was the number-two man at the International Monetary Fund, and then he was the governor of the Bank of Israel for 8 years ending in 2013. Fischer was a professor of economics at the Massachusetts Institute of Technology and taught many of the world’s top central bankers, and also served as chief economist at the World Bank. Financial markets took the resignation in stride, with little movement in stocks SPX, +0.28% or bonds TMUBMUSD10Y, +0.59% .
The Senate Banking Committee is scheduled to vote Thursday on the nomination of Randal Quarles to serve as Fed vice chairman for bank supervision. Assuming Quarles is confirmed, there still would be three positions for Trump to fill on the Fed’s board. The Trump administration has floated a few names for other seats on the central bank but has not sent the nominations to the Senate. Financial markets are eager to know Yellen’s fate. Her term as Fed chief is set to expire in February. Trump has said he is considering reappointing Yellen. He also said one of his top economic advisers, Gary Cohn, is a candidate for the post.
