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"The Zionist Jews who are running these big banks and the Federal Reserve, which is not run by the Federal Government, they need to be run out of this country," said McAllister who identified herself as a LAUSD employee during an interview with Reason.tv. The short clip went viral quickly.

McAllister made similar comments in a later interview with Fox 11. 

"Jews have been run out of 109 countries throughout history, and we need to run them out of this one," she told Fox 11.

In a statement LAUSD Superintendent John Deasy condemned McAllister’s remarks, acknowledging "freedom of speech rights of public employees" but noting that she is an "at-will" employee.

"I further emphasize to our students, who watch us and look to us for guidance, to be role models and to represent the ideals by which LAUSD lives, that we will never stand for behavior that is disrespectful, intolerant or discriminatory," said Deasy. "As a day-to-day substitute teacher, Ms. McAllister was an at-will employee."

The Anti-Defamation League (ADL) applauded Deasy for denouncing McAllister.

"Superintendent Deasy and the school district took a clear and firm stand against anti-Semitism by clearly and unequivocally condemning McAllister’s remarks," said Amanda Susskind, ADL Los Angeles Regional Director. "We welcome his statement, and we hope that others more directly affiliated with the Occupy Wall Street and Occupy LA movements will make similar efforts to denounce any expressions of anti-Semitism during the protests."

What do you think? Did the school district make the right decision?

Reach Reut Cohen here or follow her on Twitter.