Fischer told President Trump in a letter released by the Fed that he was leaving for personal reasons.
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.
Fischer used his resignation letter to offer a summation of what he sees as the Fed's accomplishments during his tenure as vice chair.More news: Trump hints at pulling out of free trade deal with South Korea
Trump is expected to nominate a Fed chair in February when Yellen's term expires.
In his two-paragraph letter to the president, Fischer hailed the US economy's progress and the Fed's reforms to make the financial system more resilient.
Former Board of Governors member Daniel Tarullo stepped down in April.
"Stan's keen insights, grounded in a lifetime of exemplary scholarship and public service, contributed invaluably to our monetary policy deliberations".More news: Defending champion Kerber beaten by Japanese teenager at US Open
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. "He represented the Board internationally with distinction and led our efforts to foster financial stability", says Chairman Janet Yellen. "We will miss his wise counsel, good humour, and dry wit".
Trump already has nominated Randal Quarles to one vacancy and now will have at least two more beside, potentially, Yellen.
Fischer is a former vice chairman of Citigroup, the former first deputy managing director of the International Monetary Fund, and the former chief economist of the World Bank.More news: Gov Emmanuel revs up Eagles, promises team $10000 per goal