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CCTV Script 07/09/17

— This is the script of CNBC's news report for China's CCTV on September 7, Thursday.

73-year-old Fischer was previously appointed by former US President Barack Obama in 2014 as Vice chairman of the Federal Reserve. His term was set to expire in June 2018. But, in a letter addressed to Trump last night, Fisher resigned, citing "personal reasons". He also said that the measures taken after the financial crisis had made the US economic system stronger and more resilient.

Fischer is the second most important person in Fed and someone who is widely respected. He had served as President of the Bank of Israel, Vice-chairman of Citibank, IMF's first deputy Managing Director, and the World Bank's Chief economist. But he was most notably known as an MIT Professor. His students included Draghi, President of the European Central Bank, and Bernanke, the former chairman of the Federal Reserve, and so on.

Fischer's departure will leave four of the seven seats on the Fed Board vacant. Trump's subsequent appointment for these vacancies will then determine the new outlook of Fed. Fischer's departure is also widely considered to bode well for the "Dodd Frank" Act, in terms of promoting for financial regulation.

This is because Fisher had always been known for as being hawkish and adopting a tough stance on the bank. For example, in a recent media interview, Fischer issued a strong criticism on post-crisis deregulations. His departure will then give Trump the chance to appoint a Wall Street-friendly policy maker who can implement financial deregulation policies.

Another key event to note is the stepping down of Federal Reserve Chairman, Yellen, in February next year. As we all know, not only has Trump criticized her leadership, Yellen, herself, has also not expressed anything promising about her re-election. It is highly possible that Trump will not re-elect Yellen but Fischer's resignation may result in a turn for the better.

This is because the Fed is currently facing some large-scale changes in its management. This may motivate Trump proceed with a safe and stable choice, to which Yellen is undoubtedly the one. Thus, despite criticisms towards Yellen, it is possible that Trump would continue to support a Yellen-led Fed.

[DAVID JOY, Ameriprise Financial Chief Market Strategist] "It remains to be seen what the president wants to do in terms of the types of people and the background and their philosophy towards monetary policy that he's going to appoint. We just don't know how that's going to look. I would say Mr. Fischer's resignation may increase the odds that Janet Yellen gets reappointed. If that's the case, if I think the markets will look favorably upon that as sort of a degree on continuity. But again there are a number of vacancies, as the complication of that body could change, so clearly that's a wild cards for the markets."

But now, everything remains unconfirmed and Trump's nominated candidates would still have to gain the approval of the Senate. We will continue to keep watch.

CNBC's Qian Chen, reporting from Singapore.

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