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.
Fischer, who was appointed in May 2014 by President Barack Obama, said he will resign from the board, effective on or around Oct. 13. Fischer, 73, whose term was set to expire in 2020, cited personal reasons for his departure. He is married with three adult children. During his tenure at the Fed, he served as chairman of the board's committee on Financial Stability as well as the Committee on Economic and Financial Monitoring and Research.
"Stan's keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations. He represented the Board internationally with distinction and led our efforts to foster financial stability," Fed Chair Janet Yellen said in a statement.
Fischer joined the Fed after serving as a governor of the Bank of Israel, from 2005 to 2013, according to BoardEx, a relationship mapping service of TheStreet Inc. He is a dual citizen of the United States and Israel. Previously, he was vice chairman of Citigroup Inc. (C - Get Report) for nearly three years. He was also the first deputy managing director of the International Monetary Fund from 1994 to 2001 and was the chief economist for the World Bank between 1988 and 1990.
Fischer, who was born in Zambia in 1943, received his undergraduate and master's degrees from the London School of Economics and a Ph.D. in economics from the Massachusetts Institute of Technology, where he would go on to become a professor. While at MIT, Fischer oversaw former Fed chairman Ben Bernanke's thesis and taught European Central Bank President Mario Draghi, according to Bloomberg.
Fischer's role as vice chairman meant he had an influential position, assisting and advising Yellen. In his resignation letter, Fischer said it has been a "great privilege to serve on the Federal Reserve Board, and, most especially, to work alongside Chair Yellen."
But with Fischer's soon-to-be-vacant seat, the president has the responsibility for nominating a candidate to the seven-member Board of Governors, and each much be confirmed by the Senate.
Fischer's departure means that four of the seven seats on the board will be vacant. Only Yellen, Jerome Powell and Lael Brainard will remain on the Board of Governors. The president nominated Randal Quarles, a former Treasury official under President George W. Bush, to be a governor. His nomination, however, still needs to be confirmed by the Senate.
Yellen's term as chair is set to expire in February as well. She has committed to remaining as chair through the end of her term but has declined to speculate on whether she would stay after that. There have been reports that President Trump is considering Gary Cohn, a top White House economic adviser and former Goldman Sachs (GS - Get Report) president, for the chair position.
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Editors' pick: Originally published Sept. 6.