Fed Vice Chair Stan Fischer Unexpectedly Resigns "For Personal Reasons"

Tyler Durden's picture

In a shocking announcement, the latest rat to abandon the sinking ship - because it is far less fun to navigate the world's biggest economy when you are raising rates than when injecting trillions - Federal Reserve Vice Chairman Stanley Fischer has announces his decision to step down effective October 13 (Friday), citing "personal reasons" in letter of resignation to President Donald Trump. His term as vice chair was set to expire on June 12, 2018.

Fischer's resignation increases vacancies on the Fed Board from three to four, with Yellen and Brainard and Powell remaining the only members on the Board. This could accelerate Senate confirmation of Randal Quarles to be Vice Chair for Supervision, which will be considered tomorrow in the Senate Banking Committee and looks likely to approved by the full Senate prior to Fischer’s planned departure, according to Goldman.

In his letter, Fischer praises America's economic growth during his tenure, and says that "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 the US.

In one of his last public appearances, Fischer warned about complacency over market risks, and said that the price of “risky assets,” had increased in most major asset markets in recent months, including equities, which now stand in the top quintile of historical distributions.

"the increase in prices of risky assets in most asset markets over the past six months points to a notable uptick in risk appetites.... Measures of earnings strength, such as the return on assets, continue to approach pre-crisis levels at most banks, although with interest rates being so low, the return on assets might be expected to have declined relative to their pre-crisis levels--and that fact is also a cause for concern."

Complimenting Fischer, in the Fed's statement Janet Yellen said that “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."

Full Fed statement below:

Stanley Fischer submits resignation as a member of the Board of Governors, effective on or around October 13, 2017

 

Stanley Fischer submitted his resignation Wednesday as Vice Chairman and as a member of the Board of Governors of the Federal Reserve System, effective on or around October 13, 2017. He has been a member of the Board since May 28, 2014.

 

"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," said Chair Janet L. Yellen. "I'm personally grateful for his friendship and his service. We will miss his wise counsel, good humor, and dry wit."

 

Dr. Fischer, 73, was appointed to the Board by President Obama for an unexpired term ending January 31, 2020. His term as Vice Chairman expires on June 12, 2018. During his time on the Board, he served as chairman of the Board's Committee on Financial Stability as well as the Committee on Economic and Financial Monitoring and Research. He represented the Board internationally including at the Financial Stability Board, the Bank for International Settlements, the Group of 20, the Group of Seven, the International Monetary Fund, and the Organisation for Economic Co-operation and Development.

 

Before joining the Board, Dr. Fischer was governor of the Bank of Israel, from 2005 to 2013. He was vice chairman of Citigroup from February 2002 to April 2005. He served as first deputy managing director of the International Monetary Fund from September 1994 through August 2001. From January 1988 to August 1990, he was the chief economist of the World Bank. He was a professor of economics at the Massachusetts Institute of Technology from 1977 to 1999 and associate professor from 1973 to 1977. Prior to joining the faculty at MIT, he was an assistant professor of economics and postdoctoral fellow at the University of Chicago.

 

Dr. Fischer was born in Lusaka, Zambia, in October 1943. He received his B.Sc. and M.Sc. in economics from the London School of Economics. He received his Ph.D. in economics from the Massachusetts Institute of Technology in 1969.

 

Dr. Fischer is married with three adult children.

A full copy of his letter to president Trump, in which he underscored the Fed's role in
strengthening the US economy and financial system, is below:

Is Yellen next?

 

Maybe not: according to the latest PredicIt market, Yellen has once again surpassed Kevin Warsh (and Gary Cohn) as most likely to retain her chairmanship of the Fed on February 4.

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SloMoe's picture

Next week, Fischer launches the FischerICO.

NugginFuts's picture

Was it Retardation? Inquiring minds want to know. 

NoDebt's picture

And the rats know the deal before everyone else does.

 

ParkAveFlasher's picture

Hurricanes, fires, earthquakes, h-bombs...print PRINT PRINT!!!!

Kotzbomber747's picture

"...for personal reasons..." is usually an indication for health problems.

toady's picture

Gotta get to the bunker before the shit hits the fan.

Life of Illusion's picture

HE WANTS ONLY A "I SAVED ECONOMY" REFLATION RECORD!

 

ITS GOING TO GET UGLY

 

 

THE ACTING FED CHAIR JUST QUIT

remain calm's picture

He was having an affair with Yellen and Yellen gave him syphyllis and he is getting dementia as a result, wife is filing for a divorce

peddling-fiction's picture

The chosen month, weekday and day make De Molay very proud of his brethren.

Is it payback time, finally?

Plus, lets do the "math":

13 + 10 + 2017(10) = 33 <-- Not very subtle

Ordo ab Chao folks

Buckle up.

Blankone's picture

I absolutely f'ng hate how stuff like that keeps showing up.

To me it's a sign they do not just want all the money but they are evil cruel psycho's.

peddling-fiction's picture

Their "master" has a weakness.

He must show his authorship, even in crime.

Vanity is his greatest weakness.

And yes, he is an evil and cruel psychopath.

Déjà view's picture

Musical chairs...higher calling...B.I.S.

rubiconsolutions's picture

Ewww. How do I scrub that image from my brain?

marathonman's picture

A more accurate statement from the vice chair, '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 us(!)'  

old naughty's picture

Good, Trump gets to put in one (moar) of his own.

DeadFred's picture

I hear the Vatican's treasurer position is open. 

The Cooler King's picture

'SAMPSON OPTION' in 5...4...3...2...

 

- Rosh Hashana starts ~ September 21st

- KINGSMAN "The Golden Circle" Premiere ~ September 22

- Revelation 12 ~ September 23rd

 

It was fun while it lasted ~ lol

 

Give Me Some Truth's picture

Re: Titanic

From the movie:

"This ship WILL sink."

We all know this, but it probably will stay afloat longer than any of us think possible. Hell, it already has. The entire power structure of the world is serving as emergency tug boats to keep the thing above water. And when it does sink, we will be told it is still afloat.

...I wonder if this departing vice chairman owns any gold? Or soon will be buying as much as he can get? Talk about your "tells."

The Cooler King's picture

He was buying at '666'

 

Just like the (((Plunge Protection Team))) was buying the S&P @ 666

Truther's picture

All zionist joos are fucking cowards.

auricle's picture

Perhaps he has zero chance of succeeding Janet since concensus is Trump is not going to extend her stay. 

Bigly's picture

THIS^^^

They think people will forget what they did to this country.

 

Not.

geno-econ's picture

Lots of snarky comments from troubled folks venting their personal misfortune or gripes.  However in my brief encounters with Fischer he was always  jovial and open, unlike Greenspan, a typical elitist Washington wonk.  Wish him well for whatever his reason for leaving.   

Bigly's picture

I am sure he was jovial, friendly and maybe even down to earth.

It is a mask they remove when they go back to their hidey holes at night.

peddling-fiction's picture

Masks and a dual life goes with the territory.

Would not like to see this fella with his mask off.

???ö?'s picture

Peak Zion.

Fischer was born into a Jewish family in Mazabuka, Northern Rhodesia (now Zambia). When he was 13, his family moved to Southern Rhodesia (now Zimbabwe), where he became active in the Habonim Zionist youth movement.

Rhodesia, commonly known from 1970 onwards as the Republic of Rhodesia, was an unrecognised state in southern Africa from 1965 to 1979, equivalent in territorial terms to modern Zimbabwe.  Cecil John Rhodes was a British businessman, mining magnate and politician in South Africa, and founder of Rhodesia, who served as Prime Minister of the Cape Colony from 1890 to 1896. An ardent believer in British imperialism.

In October 1871, 18-year-old Rhodes and his brother Herbert left the colony for the diamond fields of Kimberley. Financed by N M Rothschild & Sons, Rhodes succeeded over the next 17 years in buying up all the smaller diamond mining operations in the Kimberley area. In 1873, he returned to Britain to study at Oxford, but stayed there for only one term after which he went back to South Africa. His monopoly of the world's diamond supply was sealed in 1890 through a strategic partnership with the London-based Diamond Syndicate. They agreed to control world supply to maintain high prices.

 

At his death he was considered one of the wealthiest men in the world. In his first will, written in 1877 before he had accumulated his wealth, Rhodes wanted to create a secret society that would bring the whole world under British rule. The exact wording from this will is:

"To and for the establishment, promotion and development of a Secret Society, the true aim and object whereof shall be for the extension of British rule throughout the world, the perfecting of a system of emigration from the United Kingdom, and of colonisation by British subjects of all lands where the means of livelihood are attainable by energy, labour and enterprise, and especially the occupation by British settlers of the entire Continent of Africa, the Holy Land, the Valley of the Euphrates, the Islands of Cyprus and Candia, the whole of South America, the Islands of the Pacific not heretofore possessed by Great Britain, the whole of the Malay Archipelago, the seaboard of China and Japan, the ultimate recovery of the United States of America as an integral part of the British Empire, the inauguration of a system of Colonial representation in the Imperial Parliament which may tend to weld together the disjointed members of the Empire and, finally, the foundation of so great a Power as to render wars impossible, and promote the best interests of humanity."

Mark Twain's sarcastic summation of Rhodes reads, "I admire him, I frankly confess it; and when his time comes I shall buy a piece of the rope for a keepsake".

 

Dame Ednas Possum's picture

Samuel Clemens.

One of the greatest Americans. 

 

Herd Redirection Committee's picture

October 13th is a famous date in Knights Templar history.  Knights Templar being the original bankers (as far as medieval Europe is concerned).

The day they were betrayed.  Hmmm.... Is Stanley signalling his own betrayal?  Has the time bomb been put in place, and all that remains is for the right time to arrive, to "pull it"?

What season are we going into?  Autumn?  Or is it "the Fall"?  And did you seen the man burning at Burning Man?

Yukon Cornholius's picture

The Autumn Wind is a Raider
Pillaging just for fun
He'll knock you round and upsid down
And laugh when he's conquered and won.

Bay of Pigs's picture

+1

Waiting for a "snarky" comment from geno econ.

There are some real dumb posters here at ZH these days who can't refute anything and have no balls to engage in debate honestly.

sagramore's picture

I fellow I've known for years who is jovial and open turned out to be a prolific pedophile.

rubiconsolutions's picture

Oh yeah, I'm sure he was Jovial. So was Joe Stalin from what I understand.

SoilMyselfRotten's picture

I think youi meant FischeRICO

 

FIFY, no problem

bamawatson's picture

smells like rotting stinking fischer

Buck Johnson's picture

They are bailing from the ship big time.

 

 

Give Me Some Truth's picture

Re: Print!

Yep. It's really quite an easy job. Same for presidents and Congress Critters. For every situation the answer is the same - print more. These people are as over-rated as over-rated can be.

The "Hard" job would be anyone who rejected, and tried to stop, the default answer of printing more. Abolishing the Fed and making sure markets are authentically free - and letting the market determine interest rates - would take some guts and be hard work to achieve. In Congress, spending less than the government takes in would be a legit challenge.

Everyone on this board could "govern" today. Just raise the debt ceiling when needed and spend the rest of your time working on your short game, finding a good mistress and lining up your next gig when you leave "government service" (although you really never need to leave).

Offthebeach's picture

Money, credit, is too important to be left to governments.  Unfortunately,  the demand for wholesale manufacture of credit goes back....   Governments and their tied at the hips crony capitalists love credit power to be centralized.  Otherwise deplorables,  irredeamables,  anti welfare slave state conservatives, antii-MIC lefties would have to be convinced freely to loan credit, one by one by the millions.  This of course is unacceptable to the Gov, TBTF financials, cronies like Musk, Buffett,  Corporate managers, the MIC....Welfare state "workers" and their parasites...

We had fantastic growth from Columbus to a few years after 1913.  Tens of famous cities out of the dirt, thousands of famous manufacturers,  highest labor wages and lowest priduction costs.

All gone.

Now a huge class of paperpushers,  "economists" bought and paid for, cities in Dark Ages, all prices subject to political power/edicts/commands/dictatorship. 

Dictatorship which is coming..  Will be called and demanded like the old Romans, or Germans.  

Bay of Pigs's picture

Did his job fucking things up.

Now back to Israel for his handsome reward?

oddjob's picture

Pro bono work, like ripping eyeballs from Palestinian children.

SmackDaddy's picture

That cartoon is anti-semitic

cheech_wizard's picture

Hardly, their snouts aren't nearly long enough...

Herd Redirection Committee's picture

They couldn't find  a plastic surgeon willing to do the rhinoplasty?

Herodotus's picture

Those rats do have rather long noses, don't they?

chubbar's picture

Exactly. His "personal reason" was to protect both his reputation and safety because when this thing crashes there isn't going to be any safe place to hide and he knows it. At least he can say he doesn't work at the FED any longer when he's trying to talk his way out of being lynched in front of his burning house.