In an update posted to the central bank's website at 1545 BST, the central bank said that Fischer, aged 73, would be stepping down from the Board of Governors of the Federal Reserve System on or about 13 October.
Fischer, 73, who has citizenship in both the U.S. and Israel, joined the Federal Reserve board in 2014 and his term was to expire in 2020.
His term as Vice Chairman expires next June. We believe the likely prospects of a Cohn Fed Chair led both Yellen and Draghi to rail against wholesale big bank deregulation at Jackson Hole in late August. Fischer succeeded Janet Yellen as vice chair after she became chair of the Federal Reserve earlier in 2014.
Nominated by President Barack Obama, Fischer worked with Chairman Janet Yellen to lift the US out of the financial crisis and recession through a strategy involving low interest rates and money printing. "Having a complete board of governors, including members with banking experience, is important as the Fed moves forward with needed regulatory reforms and critical monetary policy decisions". Yellen and Director of the National Economic Council Gary Cohn are among contenders to lead the central bank next year, according to US media.
'Artificial earthquake' strikes North Korea near known nuclear test site
Hours earlier, Japanese Prime Minister Shinzo Abe spoke to President Trump on the phone about the "escalating" situation. The administration also reported another quake in North Korea of magnitude 4.6, which it termed as a "collapse ".
Now Trump will also have to find someone to fill Fischer's spot.
In a statement on Wednesday, Yellen said, "Stan's keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations". During his tenure at the Fed, he served as chairman of the board's committee on Financial Stability as well as the Committee on Economic and Financial Monitoring and Research.
During his tenure at the Federal Reserve, he served as chairman of the Fed's committee on financial stability and the committee on economic and financial monitoring and research, and represented the Fed at global regulatory gatherings. "We will miss his wise counsel, good humor, and dry wit", Yellen said.