Obama To Nominate Former Bank Of Israel Head As Fed Vice Chairman Today

Tyler Durden's picture

President Obama has just nominated Lael Brainard as a Fed Governor, Jerome Powell to his second term and most notably, Stanley Fischer (ex Head of the Bank of Israel) as Vice-Chairman of the Fed. "These three distinguished individuals have the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy,” Obama said in statement. Bear in mind that Fischer is skeptical of forward-guidance (as we note below) which is soon to become the Fed's main weapon to jawbone markets.

  • Stanley Fischer's term as governor runs through 2020 (vice chair through 2018), Brainard's term through 2026 and Powell's through 2028!

Tenure anyone? We are sure they will still do a great job...

 

As we noted previously, Fischer brings some interesting views:

Q. How does Fischer broadly think about the economy?

Fischer is a highly respected academic macroeconomist. He is credited with helping to lay the foundations of New Keynesian macroeconomics, which sought to place traditional Keynesian theory on a stronger microeconomic foundation. Subscribing to this school of thought, we believe that Fischer's general view of the world is similar to that of Bernanke and Yellen, with a significant role for active fiscal and (more importantly) monetary policy. In fact, Fischer was Bernanke's dissertation adviser in graduate school, and Bernanke recently referred to him as a "role model and frequent adviser." As a result, we see little daylight between Fischer and the current core FOMC leadership with respect to their basic paradigm for thinking about the economy.

Q. How would his appointment affect the dynamics on the Committee?

Fisher is widely seen as a policy heavyweight, having not only run the Bank of Israel, but also served as the chief economist at the World Bank and First Deputy Managing Director (the number two position) at the IMF. Both his academic standing and policy experience suggest that Fischer's views will be very influential on the Committee.

Q. What are the key points from his tenure as head of the Bank of Israel?

Under his tenure, the Bank of Israel aggressively cut its policy rate from 4.25% to 0.5% in the wake of the financial crisis. Starting in February of 2009, the Bank of Israel joined the Fed in undertaking purchases of longer-dated securities, indicating a willingness to adopt unorthodox monetary policy measures. The stated intention was to "extend the effectiveness of monetary policy onto longer interest rate maturities." However, later in 2009 the Bank of Israel began hiking its policy rate, in advance of all major global central banks. We do not see this as necessarily indicating a "hawkish" policy bias on the part of Fischer, but rather a reaction to the fact that economic developments in Israel were substantially different from those prevailing in the G4 economies. The Bank of Israel did not adopt explicit calendar- or outcome-based forward guidance under his leadership.

Q. What are his views on balance sheet policy?

Fischer generally holds a favorable view on the effectiveness of balance sheet policy. As noted, the Bank of Israel began a program of longer-dated securities purchases under his watch. He also stated in a November speech at the IMF that one of the key lessons from the financial crisis, in his view, was that monetary policy is not impotent once the zero lower bound on short-term interest rates has been hit. He specifically highlighted the efficacy of the Fed's QE?which he said was supported by a substantial amount of academic work?and did not explicitly mention forward guidance on the path of short-term interest rates.

Q. What does he think about forward guidance?

In contrast to his statements on QE, he has recently expressed a more skeptical view of forward guidance. Specifically, he noted in September that "if you give too much forward guidance you do take away flexibility," that "we don’t know what we’ll be doing a year from now. It’s a mistake to try and get too precise," and that "you can’t expect the Fed to spell out what it’s going to do…because it doesn’t know." These statements contrast with Yellen's strong endorsement of forward guidance. In that sense, Fischer's statements do pose at least some risk to our expectation that the FOMC will ultimately enhance its forward guidance by reducing the unemployment threshold to 6.0%. That said, such a limited number of statements are unlikely to capture all of the nuances of Fischer's thinking on the topic. One can also argue that his criticisms apply mostly to calendar-based guidance and less to outcome-based guidance, which only requires the Fed to "spell out what it's going to do" in a more conditional sense. In any case, we have little doubt that Yellen and Fischer would see eye to eye on the need to prevent a large tightening of financial conditions anytime soon, so the slightly greater uncertainty that might result from his nomination is mainly about tactics, not strategy.

Q. What is the likelihood of confirmation?

If nominated, we think Fischer would very likely be confirmed. In the unlikely event that his confirmation faced substantial opposition from Republicans, the recent change to Senate rules requiring only a simple majority to break a filibuster on confirmation votes ensures that he could be confirmed with only Democratic votes.

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SaulRosenberg's picture

Bout time they got a real Jew in there!  (snicker chortle tee-hee!) 

Kaiser Sousa's picture

EXACTLY... que the holocaust remebrance programs to remind us of the fact they continue to be the victums and its always a conspiracy against them.....

Divided States of America's picture

I am going to amazon now to buy that hitler book.

BaBaBouy's picture

RODMAN Would Make A Better FED Vice Chair!!!

The Gooch's picture

His name was Francis Sawyer.

Ham-bone's picture

Trend of Foreigner holdings of US Treasury debt since ’08…go check the source data and notice foreigners are maintaining (not adding, not dumping) just about record high Treasury holdings...

Jan ’08 $2.4 T foreign held US Treasury debt - new debt issued $1 T - (Fed held $400 B...purchased $0)

’09 $3 T FH's-      $1 T New Debt -      Fed bought $400 B QE1...$600 B Foreigners buying    ($0 left over after Fed/Foreigners)

’10 $3.7 T FH's -   $1.9 T ND -            Fed $0 treasuries...         $700 B in foreign buying      ($1.2 T left over)

’11 $4.4 T FH's -   $1.7 T ND -            Fed bought $0 Treasuries in QE2...$700 B in foreign buying ($1 T left over)

’12 $5.1 T FH's -    $1.3 T ND - $0....  Fed bought $800 B...        $600 B in foreign buying     ($-100 left over)

’13 $5.6 T FH's -    $1.35 T ND -         Fed bought $0...               $500 B in foreign buying     ($835 B left over)

Oct ’13 $5.65 T FH's - $700 B ND -     Fed bought $540 B in QE3...$50 B in foreign buying     ($100 B left over)

seems main reason for foreign holdings slowdown in ’13 was Treasury issued $680 B while QE was buying up $540 B (or did Fed buy b/c foreigners wouldn't?)…first qtr of '14 (oct-dec) budget is about $180 B deficit on target for about $750 B or likely closer to $800 B annual after sequester non-cuts...Fed purchased $135 B ($45 B left over...)

here’s the source data…

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfhhis01.txt

I'd gladly be wrong but we have to do our best to have a common understanding of where we are...

General Decline's picture

Another Jew in a high position of power. Great.

NotApplicable's picture

Friday Humor = "highly respected academic macroeconomist."

Oxymoronic on sooooo many levels.

Four chan's picture

system of money created for freedom from tyranny=gold silver the, founding fathers

system of money created to enslave a free people to debt= worthless paper debt, jews

Yes We Can. But Lets Not.'s picture

As MDBonu$ has gone AWOL, I'll try fill the void:

We are so very fortunate that such highly accredited consummate professionals, with solid Ivy League training and deep experience at the world's largest financial institutions, have been selected to act on our behalf as stewards of the financial system. Welcome gentlemen, thank you for your gracious willingness to serve, and Godspeed.  Also, I'd like to take this opportunity to express deepest thanks and well wishes to the Honorable Benjamin Bernanke - truly a fantastic job Ben, and extend a hearty welcome to the esteemed and immensely talented and capable Janet Yellen.  Those are some big wingtips to fill Janet, but you'll look great in them.

Stackers's picture

Oligarchy: form of power structure in which power effectively rests with a small number of people. These people could be distinguished by royalty, wealth, family ties, education, corporate, or military control.

Pegasus Muse's picture

Stanley Fischer -- Is he a dual US-Israeli citizen?  Does he have an Israeli passport?

If so, to whom does he owe his primary allegience to? 

The same question ought to be asked of every elected/political appointee working in the federal government.

Cacete de Ouro's picture

This appointment has very little to do with Fischer`s passport and a lot do to with the fact that is is a member of the Group of Thirty (G30). The G30 is a David Rockefeller construction. Rockefeller set it up through Geoffery Bell of Schroders in 1978. So Fischer has allegiance to the Rockefellers, the Council on Foreign Relations (CFR) and the Powers in the Fed banks (JP Morgan, Citi, Rothschild, Schroders, Warburgs, Goldman)

http://www.group30.org/bio_fischer.shtml

 

 

overmedicatedundersexed's picture

cacete," This appointment has very little to do with Fischer`s passport "..but it dosn't hurt.

Sofa King Confused's picture

 JEW SA JEW SA JEW SA JEW SA....sorry USA USA

Divided States of America's picture

Where is resident Zionist trolls Flakemeister and VD?? They should be here cheerleading that another one of their tribal leaders got the nod for another major central bank nomination.

 

ArrestBobRubin's picture

Now we see why they hate the idea of Loyalty Oaths. They only have one and it sure ain't to you and I or the United States of America.

WarPony's picture

Ah, but they have an escape hatch - annual "Kol Nidre" - "All [personal] vows we are likely to make, all [personal] oaths and pledges we are likely to take between this Yom Kippur and the next Yom Kippur, we publicly renounce. Let them all be relinquished and abandoned, null and void, neither firm nor established. Let our [personal] vows, pledges and oaths be considered neither vows nor pledges nor oaths."

Herd Redirection Committee's picture

Same thing happens at Bohemian Grove, they call it "The Cremation of Care"

vulcanraven's picture

What the fuck kind of ass backwards double talk is that?

Bunch of fuckin garbage if you ask me, no Jew is held accountable to anything?

That being the case, no wonder fraud and graft is the status quo.

Jack Burton's picture

ArrestBobRubin, I try always to give the jewish religion the benefit of the doubt. I don't want to attack their Israeli state or what they do in finance around the world. All I can say is, I begin more and more to agree with you. Evidence points to their playing an evil role in this world, why do they do it. Last time Europe got a chance, they killed them 'en mass. Would that not be a warning to stop their greed? Nope, they have never been so greedy as now. It is their fault, not mine. I can't apologize for them any longer.

Rafferty's picture

Jack, it's like peeling the layers on an onion. And the deeper you get the worse it gets.  In fact I ended up believing nothing of the official story on anything related to YKN.  And my research continues.  Truly it is a mind-blowing experience.

JackWills's picture

You know its just like the mob, they keep taking a big piece of the printed pie (free money to wallstreet firms with yeshiva connections) and then when the place is almost run down, they set fire to the place for insurance money (that is when they massively short the dollar and T-Bills)

Oh regional Indian's picture

Conspiracy theories are going to become conspiracy fact so fast that general cognitive dissonance will ensue.... The veil is parting, in yer face, JPM and Made off hand in glove?

To Israel....

And now....

Dot connecting 101 eh?

http://aadivaahan.wordpress.com/2011/02/16/truth-about-america-truth-about-us/

ori

i-dog's picture

Don't jump to conclusions. As I see it, the Jesuits are setting the Jews up to take the blame [as usual] ... and how better to do that than to stack the bogeyman FED (which answers to its HIDDEN shareholders, remember) with a synagogue load of fall guys?

Let me guess how many joo-bashing posts there will be in this thread. Ummmm....

Let's stop fucking around boo-ing at the puppets and get to the REAL controllers hidden behind the curtain, eh?

NotApplicable's picture

I'm of the opinion that every collective can be blamed as they are but mere tools of the individuals who hide in the shadows while providing activation energy for the divide and conquer that results.

i-dog's picture

Which is why I'm pointing to those who are hiding in the shadows.

Colonel Klink's picture

Yeah sure, all the joos in high levels of government and the Federal Reserve are just dupes to the jesuits.  If so, then shouldn't these so called VERY SMART people see the ruse and refuse to participate in the theft and graft?

FAIL!

Herd Redirection Committee's picture

Bottom line, City of London, Wall St., Washington DC, and the Vatican all work together.  It is incorrect to think of them as seperate.

ArrestBobRubin's picture

You left out Tel Aviv- - was that simply an oversight?

Herd Redirection Committee's picture

I think they were included under City of London and Wall St.

Oh regional Indian's picture

To idog's point, the He Sue ists are a big part of the game.

To yours, hidden hands are called hidden hands because they are hidden hands, else they would be called found hands.

ori

Johnny Cocknballs's picture

Jesuits?

I'll bite - do you have a shred  of evidence of this?  See, to me, the "Jesuits control the world" meme is going around from two sources:  Southern Evangelicals/Christian Zionists who just hate Catholics and want Israel to kill lots of Aye-rabs so Jesus will come back... and Jewish Zionists who want to obfuscate their easily empirically verifiable power positions.

 

So which flavour are you? 

 

p.s. You know why the South was so racist?  Because, in part, it was filled disproportionately with Protestant, Scotch-Irish and Anglo-Irish settlers for whom blind hate was part of their culture.

It also explains why they like Israel so much...their own forebears also engaged in ethnic cleansing, murder and pillage. 

janus's picture

absolutely brilliant!

you explain why southerners are 'racist' by making baldly 'racist' comments....boy howdy! this 'racism' stuff -- and the 'logic' underpinning it -- sure is solid-state. 

after decades trying to dissolve the thinking of imbeciles, i believe i've come to some conclusions; one of which is that their 'thinking' is anything but.  simply reductive renderings of whatever fashionable notion they feel finds favor with other imbeciles; and if it does, the moronic tendencies are reinforced, and they then calcify themselves into sanctioned fact.

but, before you take offense, i'm not necessarily calling 'you' an imbecile...Lord knows, i'd hate to be called a 'racist' if'n you happened to be drawn from the swill of some cesspool of human detritus -- some peoples not so waspish.

look, the entire span of my near forty years has been overstuffed with obnoxious propaganda; i've been instructed -- explicitly -- that i am bad because of my skin color and the original sin first invested in me by the prowess and industry of my forefathers...i am, it would seem, the progeny of pure evil.

and my thinking is now thus: if this is so, and there's nothing i can do but endure a life of shame, recrimination, exploitation and reprisal...well, i simply won't.

one more thing: the southern affinity for israel is by design (not the function of two mendacious peoples plotting against brown-skins everywhere); it was manufactured to effect a certain outcome, and you will see, in the VERY near future, an inversion of that design...once again, by design.

at least the moslem accepts Christ as a prophet; the jews have a less favorable opinion of The Savior -- they make this abundantly clear.

so, go waddle your sorry ass back to vasser, you racist bitch.

https://www.youtube.com/watch?v=IBhVlJw1gP8

marching on,

janus

Johnny Cocknballs's picture

Baldly racist comments?  Huh?

Are you actually a retarded person, tough guy?  Do you know what "racism" actually means?  No, it isn't "racist" to make the claim that the Scotch and Anglo Irish who came to the American South from Ulster were already culturally steeped in racism.  You might read about the Ulster Plantations. You might see a parallel with the settler-colonialism of Israelis today.

That racist/colonialist mindset preceded owning slaves, and preceded the Scoffield Bible.  Listen to Ian Paisley's speeches - he's the sort of clueless hate-filled windbag who blames "The Jesuits" for things others are obviously responsible for {which naturally doesn't include the control of the kid-fucking industry, granted}.

The culture of the Jewish settlers is racist.

This isn't a racist claim, its a claim about their culture.

The same holds for my statements, whether or not you accept them as such, you incoherent, vapid twat.

 

Now run along you simple cunt.  If you think like you write, I hope to fuck there's a Big Native-Indian Fella about to keep an eye on you.

janus's picture

i have to leave now, but in a day or two i will return to check...

please-oh-please define racism for this vapid twit.

and i do know a thing or two about the Orange Order; i furthermore know what type of high-'culture' pervaded the habits of these noble savages.  with the possible exception of the cherokee, they were indeed filthy savages.  their culture was, in every way conceivable, loathsome (and i believe i'm being generous).

perhaps i will run into an injun...chances are he'll be a fat diabetic too drunk to articulate his hackneyed indignation...maybe i'll fuckin scalp him and tassle the hairs with orange ribbons -- and then send it to you as a 'peace' offering.

other than that, i do agree that the jewish mind is fundamentally racist (and supremacist)...the salient difference is that the jew's masturbatory vanity is impotent -- inasmuch as it's laughably precious.

and, finally, this southern protestant is a friend to the jesuit...i see them as internal reformers.  janus is a fan of the new pope.

now, i don't have time to break you down and to you demonstrate the deficiencies in these 'sentences' you've pecked-out.  i will only focus on the first (and, believe me, i could really be of help to you -- i live to give): "are you actually a retarded person, tough guy?"  

lemme ask you this: are you proud of that sentence, such that you would lead with it in an assault on janus?

i see problems with syntax, economy, redundancy...rank illiteracy.  we did all we could to civilize you savages, and this is what we get in return?

for shame!

english is a marvelous language; either learn it or go back to your buffalo pelts.

was that racist? 

how,

janus

Johnny Cocknballs's picture

Listen McMurphy, I've got places to be, no time to play The Chief.

 

Read a book, for fuck's sake. You might learn to string together a coherent thought.

janus's picture

unless i'm misinterpreting what i understand to be a semi-affable and (possibly) conciliatory tone, i will call truce.

i NEVER admit or accept defeat (i've never had to; and i never will); but my suspicion is that we occupy common terrain with respect to  matters that are of incalculably more meaningful import -- as regards the tragic trajectory that this good, green earth slopes solemnly along -- than the petty debate over what is and what is not 'racist'.  

i'm attempting to make a point about this nonsense; and that is that all peoples (if they are from any particular 'people' derived) qualify as racist -- in the broadly and nebulously defined sense that is among the intelligencia loosely codified and enforced in the most draconian and stazi-like fashion of cruel and contradictory capriciousness.  it is not only natural, but inevitable, that ALL peoples will perceive their selves through a prism of darks and brights...all boys love their mommas; all sisters love their brothers; all fathers adore their brood; all brothers band together against extraneous challenge...and this is not only a necessary, but, moreover, a valedictory virtue among the various creeds and kinds of man.

if your particular culture is of merit, it will increase.  if it is instead infected with vice, depravity, indolence, striving, enmity, superficiality or rebellion, it will rot into ruin or be summarily overrun by that of a culture what has these weaknesses remedied.

there are, without doubt, superlative and Divinely gifted individuals representing each and every people and culture from our fair and abundant earth...and those are they i wish most to meet and with them bond my very soul with unwelded and perfectly forged hoops of iron.  they are few -- but they always find a way to assert their specialness.

i am now convinced that all 'peoples' should have their own, inviolate place to cultivate or corrupt (whatever is the inclination of their 'culture'...so be it -- plague-ridden despair or virtue, industry and Light; may they choose wisely); and for the rest of us; those among us who understand that 'bigotry' and 'racism' are but forgivable and semi-rational 'ignorance' that the common man is not only entitled to, but dependent upon....well, we shall carve out our own cosmopolitan centers of sharing, thought-exchange, curiosity (in terms of both difference and similitude) and above all comity and perfected manners.

the New Age will not transform the world in a single and sudden stroke...it instead requires the active and enthusiastic endorsement of of the curious and cosmopolitan...those willing to go anywhere and do anything to attain to true Liberty.

that time is very near...and i promise -- pinky-swear -- that janus will not scalp anyone (injun or otherwise); even if some half-cocked man of good will goes and triggers something vile and agressive in me: like, for example, condemning janus and his people as genocidal and blood-thirsty murderers.

you do not understand dixie...this much is clear -- that particular ignorance notwithstanding, you seem to have some appreciation of the world you have experienced.  maybe, if'n you dare take a trip down southerasterly-ways, you'll find some things that will dillute this didactic and impoverished opinion of yours.  til then...well, continue on with your simplistic and binary appraisals of your neighbors -- both near and remote.

(btw...i feel it necessary to humbly inform you that janus is something extra-ordinary....what you call 'incoherence' is. as all of exceptional intelligence will affirm, something the world hasn't seen in a VERY long time.  the januses (or, possibly, janui) arrive, act and pass ever-so rarely...enjoy)

 

sincerely,

janus

Crawdaddy's picture

Funny that a guy with that screen name gets all huffy over religion. Good Catholic folks are victims in this scandal too. Go ask a Catholic if the Jesuits are a good or bad influence on the church.

Are you not interested in knowing more about a group that is identified as owning 43% of the world's companies?

Shreds provided:

World Bank lawyer blows the whistle on global cover up.

https://www.youtube.com/watch?v=BgT8EJp0SYU

 

Johnny Cocknballs's picture

That world bank lawyer is a zionist jew, who presents no evidence to support her claims.   The thing about the "Zionist Conspiracy" stuff is there's some evidence, it's just overstated some.

 

The thing about the Jesuit conspiracy is that it's based in anti-Catholic hate and paranoia along with zero evidence.  And fuck the Jesuits and their Church, but if if you're claiming they're behind it all, you're either shilling for Zionists or incredibly ignorant.

 

Taker yer pick.

Laughing Stock's picture

 

 

 

 

'Zactly

 

 

Tribe filth

o_rly's picture

Kevin MacDonald has a good article on this.

http://www.theoccidentalobserver.net/2014/01/stanley-fischer-a-dual-u-s-...

It seems that our financial policy is incredibly dominated by Jews. We've had over twenty years of a Fed chairman who is Jewish, starting with Greenspan in 1987, then Bernanke and now Yellen. Can we get a little diversity up in here? Maybe a black guy even? In fact, Stanley Fischer was Ben Bernanke's PhD advisor. It's a small world.

Fischer also has been instrumental in working out ways to implement the embargo against Iran more effectively. In his role in the Fed, it looks like he'll continue this, all to the benefit of Israel.

This is just another effort to condition the US public to accept more Israeli dual-citizens in to top government positions. Unfortunately, dual-Israel citizens occupy many levels of US government. They basically have a revolving door, especially within intelligence and foreign policy circles.

janus's picture

https://www.youtube.com/watch?v=zIFw4zEsLVU

history is again rhyming.

 

if the light that is in them is darkness/

how great is that darkness,

janus