US President Barack Obama on Friday announced his intent to nominate former Bank
of Israel Gov. Stanley Fischer as vice chairman of the Federal
“Stanley Fischer brings decades of leadership and expertise from
various roles, including serving at the International Monetary Fund and the Bank
of Israel,” Obama said.
“He is widely acknowledged as one of the world’s
leading and most experienced economic policy minds and I’m grateful he has
agreed to take on this new role, and I am confident that he and [incoming
Federal Reserve Chairwoman] Janet Yellen will make a great team,” he
Fischer will also be nominated as a governor representing the New
York region for a six-year term.
The US Senate confirmed Yellen, who will
be the first woman to lead the US central bank, on Monday.
Fischer’s former deputy Karnit Flug succeeded him, becoming the first woman to
lead the Bank of Israel.
Fischer joins the Federal reserve as it begins
pulling back, or “tapering,” the unconventional asset-buying program known as
In June Fischer stepped down from his position at
BoI, two years before the end of his second fiveyear term.
Cast as a
Centrist by his colleagues, Fischer is also known to buck classic economic rules
and market expectations.
During his tenure as head of the Bank of Israel,
Fischer, 70, successfully protected the state from the worldwide great
recession, often surprising investors with his interest rate
Israel’s economy shrank for only one quarter under his
leadership, and by autumn of 2009, Fischer was raising interest rates in a
declaration of victory.
Fischer is revered on both sides of the political
aisle in Israel, earning unvarnished praise from Prime Minister Benyamin
Netanyahu and Labor MK Shelly Yacimovich, former opposition
Fischer is a dual citizen of Israel and of the United States, but
had never lived in Israel before taking the top job at Israel’s central bank in
Before joining the Bank of Israel, Fischer served as top deputy at
the International Monetary Fund, where he successfully battled the Asian
financial crisis of 1998.
As a professor at the Massachusetts Institute
of Technology, one of the country’s leading economics departments, Fischer
personally trained many of today’s most influential economists, including Ben
Bernanke and European Central Bank chief Mario Draghi.
experience battling economic crises, and his international expertise, could be
important assets at the Fed.