Fed Vice Chairman Fischer to resign for 'personal reasons'

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Stanley Fischer, Vice Chairman of the U.S. Federal Reserve, on Wednesday submitted his resignation for "personal reasons", adding another vacancy in the Fed's seven-member board.

His resignation letter, which was addressed to USA president Donald Trump and was also published by the Federal Reserve, cited "personal reasons" as the cause of his departure.

"It's been a privilege to serve on the Federal Reserve board and most especially to work alongside Chair Yellen", Fischer said, citing the improvements in the economy and financial system in recent years.

The resignation comes amid uncertainty about the leadership of the US central bank as Chairwoman Janet Yellen's term is due to expire early next year and it remains unclear whether US President Donald Trump will reappoint her.

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"Fischer is seen as a hawk on monetary policy, relative to the Fed chair, having advocated higher interest rates in response to the strengthening US economy", Financial Times said. It was originally believed that Fischer was slated for appointment as chairman of the Fed. Before the central bank started raising interest rates in late 2015, he was a key figure in the Fed's communication to the public and investors. He has nominated Randal Quarles for one of the vacancies, as vice chairman for bank supervision.

As for Yellen's replacement, NEC Cohn will likely take the Fed Chief job if he wants it and can, with Trump, trim the number of PhD economists in favor of more business executives like former Goldman Sachs President Cohn.

The Fed is expected this fall to begin unloading $4 trillion of debt that it racked up during the financial crisis to keep interest rates low and stimulate economic growth.

Prior to his role at the Fed, Fischer worked as the governor of the Bank of Israel and as the vice chairman of Citigroup.