Fed: Vice Chairman Fischer resignation came as a surprise - Rabobank

Analysts at Rabobank note that Fed Vice Chairman Fischer unexpectedly announced his resignation citing “personal reasons.”

Key Quotes

“His term was scheduled to end in June 2018. While his decision surprised the markets, it is worth recalling that an interview with the Financial Times earlier this year Mr Fischer expressed concerns about Trump’s policies describing attempts to ease financial regulations banks “dangerous and extremely short-sighted.” He also said that “the US political system may be taking us in a direction that is very dangerous.”

“In terms of potential implications for the monetary policy, given Fischer’s less dovish view than Yellen’s, his departure supports our view that a third rate hike will not materialise this year. It also gives President Donald Trump an opportunity to put his mark on the FOMC earlier with four out of seven sits vacant and Chair Yellen’s term ends in February and it is not clear whether she will be reappointed, according to our Fed watcher Philip Marey.”