Yellen will resign from Fed upon Powell swearing in

  • Yellen will resign from Fed upon Powell swearing in

Yellen will resign from Fed upon Powell swearing in

Dr 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.

Federal Reserve chairman 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 U.S. central bank's leadership for years to come.

In a letter to the president, Ms. Yellen said she would ensure that a smooth transition to the next to be Fed chairman Jerome Powell goes as she steps down. Her term as chair expires in February 2018 and her term on the board ends in 2024. But she chose to follow her predecessor, Ben Bernanke, who left the central bank when Yellen replaced him in 2014.

Her resignation brings to an end Yellen's second spell on the Fed board.

In her resignation letter to Trump, Yellen said she is "gratified that the financial system is much stronger than a decade ago". Aside from the data, the focus for markets will be the progress of the U.S. tax reform through the Senate and a speech by soon-to-depart Fed Chair Yellen on Tuesday. "I am also gratified by the substantial improvements in the economy since the crisis", Ms. Yellen said.

The president announcing his decision said he holds Ms. Yellen in high regard but he would want to make his own mark on central bank by selecting someone else for the post. She was first appointed in 1994 by Bill Clinton, serving until February 1997, when she resigned to become an economic advisor to the president.