Stanley Fischer.
Former Bank of Israel Governor Stanley Fischer. Photo by Bloomberg
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Despite Washington's fiscal shutdown, Europe still poses the biggest risk to the global economy, former Bank of Israel Governor Stanley Fischer told Bloomberg Television on Friday.

Fischer, who stepped down in June after eight years at the post, said he believes the United States will emerge from the economic slowdown and political gridlock "possibly quite quickly," while "the European issues still need to be resolved." Europe is dealing with a "very complicated" situation, he said.

The fact that the United States' monetary and fiscal policies are both unclear is "an extraordinary situation," Fisher said, adding that the United States "was usually the country you could rely on.”

The Obama Administration is currently at a gridlock with Congress over federal spending and the country's debt ceiling. If the two fail to reach a compromise, the United States will risk its first-ever debt default on October 17.

When asked about his future plans, Fischer, now a fellow at the Council on Foreign Relations, told Bloomberg he still does not know.

On Wednesday, Obama nominated Janet Yellen to be the next chair of the Federal Reserve Board.