Analysis of Thomas Jordan’s resignation: Therefore, his successor will have a difficult task

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Everyone agrees: Thomas Jordan’s (61) resignation came as a surprise. The President of the Swiss National Bank did a great job; only a few critical voices were heard. Jordan is now stepping down after twelve years at the helm of the SNB.

Everyone expected that the tireless “funny” Jordan would fulfill his duty and resign only at the end of his term in 2027. By then he would have been 64 and could have had a well-deserved retirement. One can only speculate as to the reasons for the early resignation. Is it related to heart surgery in 2021?

rock in the surf

Jordan seems to have handled the situation well; Just a few weeks later he returned to the presidential desk and defended the price stability mantra of monetary policy with his characteristic smile against all criticism, never losing his cool even when asked unpleasant questions.

Giant Jordan was the rock of Swiss monetary policy and, not surprisingly, was able to face the powerful caste of other central bankers on equal footing. But at the same time he always found the right tone to explain the decisions of the Central Bank to the Swiss people in simple words.

He was convincing with his statements on negative interest rates and abolishing the minimum exchange rate during the corona epidemic and, most recently, on preventing the uncontrolled collapse of the major bank Credit Suisse. No matter how hectic the times got, Thomas Jordan remained calm. For the benefit of the Swiss National Bank, its currency and its economy. It is said to ideally fill the job profile of Governor of the Central Bank.

Lots of changes

This is over now. The result of the apparent change at the top of the SNB may now be over. When Philipp Hildebrand (60) and Thomas Jordan appointee Jean-Pierre Roth (77) rescued UBS during the 2008 financial crisis, his successor’s disposition for the coming years was determined. Philipp Hildenbrand followed in his footsteps. When he noticed his wife’s foreign currency purchases, Thomas Jordan was there to help.

Now the board is significantly weakened. Vice President Martin Schlegel (47) appears to be the designated successor. He is the only person who knows the Central Bank from the inside. The third of the group: Antoine Martin (54) has been in office since January and also comes from the US Federal Reserve. He is certainly a proven expert, but he still needs to be familiar with the intricacies of Swiss monetary policy.

A surprise would be nice

Schlegel’s professional qualifications are unquestionable. But it (still) lacks the format of its predecessors. In interviews this can sometimes seem a little vague or hidden behind monetary policy conditions. He would probably need a few more years to hone the skills of an SNB chairman. Still, it is likely that he will be elected; Electoral bodies in Switzerland are not known for experimentation.

Monetary policy, on the other hand, is most effective when it surprises markets. The Swiss National Bank has celebrated this many times in an exemplary manner in recent years, strengthening the reputation and credibility of the institution. Maybe it’s time for a surprise at the top of the SNB. Maybe even for a woman who isn’t on anyone’s radar. Or for a recent situation that cannot be taken into account because the demands of Roman Switzerland are still valid.

Source :Blick