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12 Dec 2013
Stanley Fischer rumored next Fed Vice Chair
FXstreet.com (Bali) - Former Bank Of Israel Chief Stanley Fischer is rumored to become the next Fed Vice Chair, according to reports published on Wednesday by media outlets such as the WSJ and Bloomberg.
According to reports by Channel 2 Israel, Fischer is the leading candidate to be Deputy Fed Chief, with Dow Jones adding that the White House is near nominating Stanley Fischer as Fed Vice Chair.
Fischer has a reputation for being slightly hawkish on monetary policies while opposing the practices of forward guidance.
WSJ quotes Fischer on forward guidance-related comments he made: "Mr. Fischer said making such statements – known as forward guidance – can cause market confusion. “You can’t expect the Fed to spell out what it’s going to do,” Mr. Fischer said. “Why? Because it doesn’t know.”
He added: “We don’t know what we’ll be doing a year from now. It’s a mistake to try and get too precise. If you give too much forward guidance you do take away flexibility,” said Mr. Fischer.
Giving his opinion on the leading candidate, Adam Button, US-Lead Analyst at Forexlive, wrote: "The main advantage he brings is experience with emerging markets and the effects of spillovers from US policy. His experience at the World Bank and IMF will give him particular insight into emerging market capital flow problems."
Adam added: "That will make him an advocate against policies that could hurt small or emerging markets. His experience could help smooth the QE exit process and is all-around good news for the global economy."
According to reports by Channel 2 Israel, Fischer is the leading candidate to be Deputy Fed Chief, with Dow Jones adding that the White House is near nominating Stanley Fischer as Fed Vice Chair.
Fischer has a reputation for being slightly hawkish on monetary policies while opposing the practices of forward guidance.
WSJ quotes Fischer on forward guidance-related comments he made: "Mr. Fischer said making such statements – known as forward guidance – can cause market confusion. “You can’t expect the Fed to spell out what it’s going to do,” Mr. Fischer said. “Why? Because it doesn’t know.”
He added: “We don’t know what we’ll be doing a year from now. It’s a mistake to try and get too precise. If you give too much forward guidance you do take away flexibility,” said Mr. Fischer.
Giving his opinion on the leading candidate, Adam Button, US-Lead Analyst at Forexlive, wrote: "The main advantage he brings is experience with emerging markets and the effects of spillovers from US policy. His experience at the World Bank and IMF will give him particular insight into emerging market capital flow problems."
Adam added: "That will make him an advocate against policies that could hurt small or emerging markets. His experience could help smooth the QE exit process and is all-around good news for the global economy."