Stanley Fischer’s surprise early exit from the Federal Reserve makes President Donald Trump’s biggest economic decision of the next few months even starker: whether to preserve continuity at the top of the nation’s central bank -- or not.
Turning the differing views of its 12 regional reserve bank presidents, and as many as seven governors at the Fed Board in Washington, into consensus and policy action requires both deft management and, at times, a large dose of single-minded conviction.
Yellen’s speech on regulatory issues in Jackson Hole, Wyoming, last month, showed her sticking with the core post-crisis banking reforms in the 2010 Dodd-Frank Act, which could make her less appealing to Trump’s Republican advisers.
“It is important over the longer run to maintain people with strong respect for the institutional independence of the Fed,” said Seth Carpenter, chief U.S. economist at UBS Securities in New York and a former Yellen adviser.
The past three Fed chairs -- Greenspan, Ben Bernanke and Yellen -- have shown the ability to be flexible and adaptive, perhaps one of the most important qualities now in an economy that was deeply scarred by the recession.
- Janet Yellen's No. 2 at the Fed is stepping downYahoo Finance
- Fed Vice Chair Fischer announces resignation 10 months earlyReuters
- Fischer resigns as Fed vice chair, in new opening for TrumpPolitico
- Fed's departing Fischer remembered as 'stalwart' amidst central bank turmoilMarketWatch
- Stanley Fischer announces resignation, opening yet another Fed vacancy for TrumpVox
- Dow industrials shrug off worries, propelled by energy-sector reboundMarketWatch
- Top Federal Reserve official departsBBC News
- Fed Vice Chairman Fischer to resign for 'personal reasons'ABC News
- Vice Chair Stanley Fischer stepping down from Fed, citing 'personal reasons'USA TODAY