Fischer’s departure expedites Trump’s overhaul of Fed leadership

By Ian McKendry
Federal Reserve Board Vice Chairman Stanley Fischer’s surprise decision to resign in mid-October will enable President Trump to more rapidly reshape the Fed, paving the way for it to roll back post-crisis reforms. Fischer’s departure will leave four vacancies on the seven-member Fed board. Trump’s first Fed nominee, Randal Quarles as vice chairman of banking supervision, is expected to be approved by the Senate Banking Committee on Thursday, and he is likely to clear the full Senate soon thereafter. Once Trump’s remaining three nominees are named and confirmed, his picks will represent a majority of the Fed board. Some observers said the Fed may try to rush out rules before another Trump official is added to the board. Karen Shaw Petrou, managing partner of Federal Financial Analytics, pointed to a pending regulation concerning adding a capital surcharge for the largest global systemically important banks, “The one Chair Yellen is determined to enact, but is highly controversial, is the G-SIB surcharge in CCAR” stress tests,” Petrou said. During a June hearing Sen. Sherrod Brown, D-Ohio, expressed concern that the Fed may wait for the Administration to fill empty seats on the Fed board before finalizing the capital surcharge rule for the Comprehensive Capital Analysis and Review stress tests.