Econintersect: Former Israeli central bank governor (2005-2013) Stanley Fisher is rumored tonight to be President Obama's choice to serve as Vice Chairman of the Federal Reserve Bank of the U.S. under Janet Yellen. Fisher has also served as chief economist at the World Bank (1988-1990) and from 1994 to 2001 he was First Deputy Managing Director of the IMF (International Monetary Fund). Fisher has an interesting connection with the retiring Fed chair: He was Ben Bernanke's Ph.D advisor at MIT. Fisher also taught ECB chairman Mario Draghi.
According to Bloomberg people familiar with the selection process") there are no plans for the White House to make any announcement this week. However, sources say that the president has already offered Fisher the position and Fisher has accepted it.
Here is an excerpt from a Bloomberg article:
If confirmed by the Senate, Fischer would assume the vice chairmanship of a central bank struggling to convince investors that policy will remain easy even after it winds down its quantitative easing program. Policy makers will probably start tapering bond purchases at their next meeting Dec. 17-18, according to 34 percent of economists surveyed by Bloomberg on Dec. 6. Forty percent of 35 economists predicted a move in March.
Asked in an Oct. 11 Bloomberg Television interview when the Fed should begin tapering $85 billion in monthly bond buying, Fischer said, "there is an efficient way to do it, which is to start doing it pretty soon and to do it gradually."
"It would be good to start," Fischer said.
The Financial Times had this quote Tim Adams, president of the Institute of International Finance banking group:
"I think he'd be brilliant. He's the dean of the international economic and financial community. I think it'd be a pretty formidable duo." [Referring to Ms Yellen and Mr Fischer.]
Fisher was rumored to have been considered a possible third candidate for the top Fed job earlier in the year when Yellen and Larry Summers were considered the front runners.
- Fischer Said to Be the Leading Candidate for Fed Vice Chairman (Julianna Goldman and Phil Mattingly, Bloomberg, 11 December 2013)
- Fischer Seen Bringing Crisis-Fighting Skills to No. 2 Fed Post (Joshua Zumbrun and Rich Miller, Bloomberg, 12 December 2013)
- White House considers Fischer for number two role at the Fed (Robin Harding and Richard McGregor, Financial Times, 11 December 2013)