Fischer's term as vice chairman was set to expire on June 12 next year, while he was scheduled to be a member of the Board until January 31, 2020.
Mr. Fischer has been a close ally of Fed Chairwoman Janet Yellen, whose term in the top job expires in early February. That panel, which steers policy on interest rates and other monetary policy matters, consists of seven members, who are nominated by the president and confirmed by the Senate.
Fischer, who has been a member of the central bank's board for three years, was not scheduled to leave the Fed until June of 2018.
In a recent speech, Yellen delivered a forceful defense of Wall Street reforms put in place after the crisis, widely seen as a direct contradiction of Trump's position which could cause her to lose favor in the White House. He has nominated Randal Quarles for one of the vacancies, as vice chairman for bank supervision.
Michael Pearce, Ashworth's colleague at Capital Economics, wrote in August that Fischer is the "most ardent defender of the status quo" among Fed officials, adding that it seemed likely Trump would seek to replace Fischer with someone more sympathetic to his deregulatory agenda.
During his time on the board, Fischer served as chairman of the board's Committee on Financial Stability as well as the Committee on Economic and Financial Monitoring and Research.
Fischer is an elder statesman of American finance. Before entering the world of finance, he was a professor of economics at the Massachusetts Institute of Technology from 1977 to 1999 and associate professor from 1973 to 1977.
"It has been an extraordinary privilege - and exceptionally good fortune - for me to have worked closely with Stan Fischer", Bank of England Governor Mark Carney said in a statement.