Yellen Resigns from Federal Reserve Board of Governors

Federal Reserve Chair Janet Yellen at the Federal Open Market Committee meeting in Washington on Sept. 20 2017

Federal Reserve Chair Janet Yellen said she will step down from its Board of Governors once her successor is sworn into the office, widening the scope for President Donald Trump to shape the US central bank's leadership for years to come.

Yellen's four-year term as Fed chair ends on February 3, but she could have chosen to remain on the seven-member Fed board.

In a letter of resignation to Trump, Yellen said she is "gratified that the financial system is much stronger than a decade ago", and that the economy has improved substantially.

The Senate Banking Committee is scheduled to meet November 28 to consider Powell's nomination.

Yellen, who is 71, was initially appointed to the Fed board by President Clinton in 1994 and served until 1997, when she became chair of the President's Council of Economic Advisers.

Until Monday, Yellen had been mum on whether she might stay on the Fed board if she did not get another term as chair. She also serves as head of the Federal Open Market Committee, the bank's interest-rate setting panel. She was appointed again to the board by President Obama for a term that was due to end in 2024.


President Trump settled on Powell after a selection process seen as the most public in the Fed's 104-year history.

The White House responded to Yellen's announcement by praising her tenure.

In her resignation letter, Yellen struck a gracious tone.

Yellen's decision gives Trump in his first year in office the chance to fill five positions on the Fed's seven-member board, in addition to picking Powell to be the next Fed chairman.

Yellen has presided over nearly four straight years of steady economic growth, sluggish inflation and a jobless rate that has fallen even as she directed the gradual exit from crisis-era policies.

"I am confident that my successor as chair, Jerome Powell, is deeply committed to that mission and I will do my utmost to ensure a smooth transition". As a governor, she would have had a vote on monetary policy.

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