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Former Bank of Israel Head Fischer May Take Fed Post

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Former IMF official Stanley Fischer would bring his  rolodex of international banking contacts to the post.
Former IMF official Stanley Fischer would bring his rolodex of international banking contacts to the post.
Stanley Fischer, one of the world’s top bankers, is President Barack Obama’s choice to become second-in-command at the Federal Reserve, according to people familiar with the matter who said that a nomination from the White House is pending, according to the Wall Street Journal.

Fischer  has dual citizenship in the U.S. and Israel, and served as head of the Bank of Israel from 2005 until this past June, the Journal reported. If nominated and confirmed, he would take the position as a replacement for Janet Yellen, who is awaiting Senate confirmation herself to serve as Fed chairwoman.

Fischer, 70, would prove to be a strong partner for Yellen, as he would bring to the Fed an expansive rolodex of international partners. In doing so, this could ease some of the criticism of the Fed “from emerging-market policy makers who blame Fed policies for volatility in their markets,” the Journal reported.

Fischer also worked in the ‘70s and ‘80s as a professor at the Massachusetts Institute of Technology, where he “ taught a number of the world’s top policy makers in international economics, including current Fed chairman Ben Bernanke, who earned his Ph.D. in 1979. Other former students of Mr. Fischer include European Central Bank President Mario Draghi and Lawrence Summers, a former Clinton Treasury secretary and the former head of Mr. Obama’s National Economic Council.”

In addition, Fischer  was vice chairman at Citigroup from 2002 to 2005 and then served as deputy director of the International Monetary Fund from 1994 to 2001. At the International Monetary Fund in the 1990s, Fischer spent his time managing the government Washington’s response to the crises in Russia, Asia and Latin America.

Fischer recent economic positions, including his role at the IMF, prominently place him in the midst  of the economic policy-making establishment of the past two decades. Unfortunately, this includes he years prior to and immediately after the 2008 financial crisis. Fortunately, however, economists view Fischer as a pragmatist “who has been supportive of the Fed’s efforts to boost the economy after the crisis,” the Journal reports.

“Stan was my teacher in graduate school, and he has been both a role model and a frequent adviser ever since,” current FED chair Ben Bernanke reportedly said last month. “An expert on financial crises, Stan has written prolifically on the subject and has also served on the front lines.” it.”

Other names being considered for Fed openings include a former U.S. Treasury Undersecretary for International Affairs Lael Brainard and former assistant Treasury secretary and Janice Eberly.

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