This Wednesday, Stanley Fischer, the Federal Reserve Vice Chairman, stated that he would be leaving the following month. The cause behind his resignation is supposed to be out of personal issues. With him leaving the office, President Trump will have to think about an adequate replacement for his position in the office.
The 73-year-old Fischer, is a famous economist and ex-Citigroup official who chaired Israel’s central bank during the 2008 global financial crisis. He has been Fed Chairwoman Janet L. Yellen’s t man top aid since taking office in 2014 after being appointed by President Obama.
Fischer’s leaving and three existing jobs on the Fed’s seven-member Board of Governors give the current president the opportunity to fully reorganize the panel.
“It’s the largest potential regime change in the leadership of the Fed since 1936,” said Diane Swonk of DS Economics, who follows the central bank. “It introduces a whole new level of uncertainty.”
The president already has appointed investment fund manager Randal Quarles to fill one of the Fed’s jobs and is thinking whether to pick Yellen to another four-year term. Her mandate ends in February.
Donald Trump has stated Yellen and Gary Cohn, the ex-Goldman Sachs executive who is the top White House economic advisor, are the main candidates for Fed chair.
But the Wall Street Journal, quoting unknown sources, said on Wednesday that Cohn is improbable to be chosen because of serious remarks he delivered about Trump’s reaction to the Charlottesville, Va., ferocity.
Cohn said to the Financial Times in an interview in August that the current administration “can and must do better in consistently and unequivocally condemning” white extremists, neo-Nazis and the Ku Klux Klan.
The central bank’s monetary policy decisions will influence president’s push to boost economic growth. The Fed plays a crucial role in regulating large financial companies. Trump and important congressional Republicans are pushing to loosen that regulatory oversight.
SHARE this article with your friends.