10.01.2014 19:52:49
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Obama To Nominate Former Bank Of Israel Chief As Fed Vice Chair
(RTTNews) - President Barack Obama announced Friday that he intends to nominate Stanley Fischer to serve as Vice Chairman of the Federal Reserve.
Fischer, who served as the Governor of the Bank of Israel from 2005 to 2013, would succeed Janet Yellen as Vice Chair. Yellen was confirmed as the successor to Fed Chairman Ben Bernanke earlier this week.
"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 in a statement.
The president added, "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 Janet Yellen will make a great team."
Obama also announced his intent to nominate former Treasury Undersecretary for International Affairs Lael Brainard to serve as Fed Governor.
Brainard served as Treasury Undersecretary from 2010 to 2013, and Obama described her as one of his top and most trusted international economic advisors.
Additionally, Obama said he intends to nominate Jerome Powell for a second term as Fed Governor. Powell joined the Fed in 2012 and previously served as a Treasury Undersecretary for former President George H.W. Bush.
"These three distinguished individuals have the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy," Obama said. "I'm confident that these individuals will serve their country well."
The nominations to the Federal Reserve come as the central bank faces the difficult task of scaling back its unprecedented stimulus program.
Following its December meeting, the Fed announced plans to scale back the pace of its bond purchases by $10 billion to $75 billion a month beginning in January.
The minutes of the meeting noted that a majority of participants determined that the marginal efficacy of the Fed's asset purchases was likely declining.
At the same time, many members said the Fed should proceed cautiously in order to prevent the move from being misinterpreted as a signal that policy accommodation will be withdrawn more quickly than anticipated.
The minutes led several economists to reiterate predictions that the central bank will continue to will taper by $10 billion per meeting until the program ends.