Obituary: Stanley Fischer, Former Federal Reserve Vice Chair and Bank of Israel Governor, Dies at 81

JERUSALEM, June 1 (Reuters) – Stanley Fischer, a towering figure in modern economic thought who served as governor of the Bank of Israel and vice chair of the U.S. Federal Reserve, has died at the age of 81.

The Bank of Israel confirmed his passing on Saturday night but did not disclose the cause of death.

Born in Zambia, Fischer held dual U.S.-Israeli citizenship and was widely respected for his influential role in shaping global monetary policy throughout a distinguished career spanning academia and central banking.

As an academic at the Massachusetts Institute of Technology (MIT), Stanley Fischer mentored a generation of future economic leaders, including former Federal Reserve Chair Ben Bernanke and former European Central Bank President Mario Draghi.

Fischer’s career spanned some of the most influential institutions in global finance. He served as chief economist at the World Bank and later as the first deputy managing director of the International Monetary Fund, where he played a critical role during the Asian financial crisis. From 2002 to 2005, he was vice chairman at Citigroup.

Appointed governor of the Bank of Israel in 2005, Fischer led the institution through the turbulence of the 2008 global financial crisis. His steady leadership helped shield Israel’s economy from severe damage, enhancing the country’s international economic standing. He also modernized Israel’s monetary policy framework by establishing a policy committee to set interest rates, aligning the central bank with practices in other advanced economies.

Current Bank of Israel Governor Amir Yaron described Stanley Fischer’s contributions to the central bank and Israel’s economy as “truly significant.”

Soft-spoken yet profoundly influential, Fischer played a key role in Israel’s 1985 economic stabilization program, which successfully curbed hyperinflation. He was appointed governor of the Bank of Israel in 2005 by then-Finance Minister Benjamin Netanyahu and Prime Minister Ariel Sharon.

Netanyahu, now prime minister once again, lauded Fischer as “a great Zionist” for leaving the United States to lead Israel’s central bank.
“He was an outstanding economist,” Netanyahu said. “During his tenure as governor, he made a major contribution to Israel’s economy, especially in restoring stability during the global financial crisis. Stanley—as he was known in Israel—proudly represented our country and its economy on the world stage.”