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MORGAN STANLEY: America Is On The Verge Of Having A 'Fed Dream Team'

Sam Ro   

MORGAN STANLEY: America Is On The Verge Of Having A 'Fed Dream Team'
Stock Market1 min read

stanley fischer

REUTERS/Gil Cohen Magen

Stanley Fischer, former Bank of Israel governor

According to multiple reports, the White House has asked Stanley Fischer to be the next Vice Chair of the Federal Reserve.

So far, we've heard nothing but endorsements for Fischer, who is credited for successfully navigating Israel's economy through the financial crisis.

"We think it is great news that the Administration may nominate Stanley Fischer to be vice-chairman of the Federal Reserve Board," wrote Morgan Stanley's Vincent Reinhart in a note titled The Fed Dream Team. "Fischer has been around the inner circle of international economic policymaking for three decades. If he was not at a major meeting in person, one of his students from his long tenure at MIT probably was."

Fischer's student have included current Fed Chair Ben Bernanke and ECB chair Mario Draghi.

"The most relevant experience for the job as vice- chairman was his eight years of service as First Managing Director of the International Monetary Fund," added Reinhart. "He effectively ran the institution for the Clinton Treasury from below an MD who was either headed for retirement (Michel Camdessus) or viewed by them as inadequate (Horst Kohler). When you add his service at the World Bank and as governor of the Bank of Israel, Fischer has a resume that cannot be topped."

Fischer would serve alongside Janet Yellen, who is expected to be confirmed as the next Fed Chair this month.

"A Yellen-Fischer-led Fed would likely work as a world-class institution if all goes according to plan," wrote Reinhart.

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