The Feed Stanley Fischer lunge for US dollars
On September 9, 2017 the Federal Reserve (The Fed) or Deputy Leader of the Central Bank of the United States, Stanley Fischer, said that he would resign from the position held so far. Stanley Fischer will officially resign on October 13, 2017, exactly 8 months before his term as deputy chairman which should end in July 2018.
Fischer claimed that he resigned for personal reasons. This is expected to accelerate the decision of the US President, Donald Trump, to reshape the direction of the Central Bank. The resignation of Fischer left the Federal Reserve Board of Governors seven people to three. There has been no statement regarding who will replace his position. The new Banking Senate Committee will be scheduled to choose the nomination on Thursday, September 7.
Stanley Fischer became Deputy Chair of The Federal Reserve after being nominated by former US President Barack Obama. Fischer was chosen on the grounds that he had a lot of experience, especially in the field of Economics.
This resignation led to the emergence of estimates for Trump to decide to overhaul US monetary policy . As was known earlier that Governor of the Federal Reserve Janet Yellen ended in February.
Lacking in the United States Economy
Stanley Fischer decided to leave his position as Deputy Leader of the Central Bank of the United States at the age of 73 years. After being nominated by former US President Barack Obama, Stanley Fischer has done a lot of work to improve the economy of the United States in recent years.
In a letter addressed to Trump, Fischer said that job growth in the United States had returned. The steps taken by Stanley Fischer made the United States financial system stronger and more durable. But this matter is predicted to be weakened by the Trump administration. The Senate also confirmed that the candidate proposed by Trump was Randal Quarles who would act as Vice President as supervisor. Though this work is very different from the position held by Stanley Fischer before.
In addition to increasing employment growth in the US, Stanley Fischer is also in the Central Bank of USA or the Fed decided to keep interest rates at the lowest level throughout history. This decision was taken at a meeting of the Federal Open Market Commission (FOMC) held on 16-17 September 2015.
The exchange rate of the US dollar continues to strengthen from most major currencies as investors’ decisions take into account the latest statements from several Federal Reserve officials, including Stanley Fischer as Fed Vice Chair.Stanley Fischer said that while the United States and other countries have taken action to strengthen their housing finance system. According to CNBC, this is done to prevent future crises.
Stanley Fischer also said that the current target of the federal funds rate commission is 0 to 0.25% that is appropriate. This aims to support progress towards maximum and more stable employment. Chairwoman Janet Yellen also believes that the possibility of a rate increase can still be done before the year ends.
This interest rate also affects the value of the rupiah in the country. This decision will make a positive impact on Indonesia’s economic growth rate. The Fed’s previous decision to raise interest rates which was predicted to disrupt the existing economic growth rate. Bank Indonesia must be ready to be on the market with its monetary operations if indeed the Fed increases interest rates.