Washington: Janet Yellen has stepped down from her position as Federal Reserve Board chairman since President Trump decided not to offer a second term to serve as Fed Chairman.
She has submitted her resignation on Monday stating she will leave when her successor chosen by the President is sworn as the chairman.
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.
President Trump can now fill in the five positions on the federal seven-member board which would include Mr. Powell to be the next chairman.
Mr. Powell’s confirmation hearing is scheduled for next week before the Senate Banking Committee.
Ms. Yellen’s term as a Fed chairman ends on 3 February which was a four-year term. Her board member term ends in 2024. Until Monday Ms. Yellen did not speak about whether or not she will opt to stay as a board member if she does not get another term as Fed’s chair.
The Federal board currently has three vacancies which includes No. 2 spot of vice chairman.
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.
In her letter to the President, Ms. Yellen said it was “my great privilege and honor” to serve in the Federal Reserve system over three decades, at first as a member of the board during the 1990s.
Ms. Yellen had previously served as president of the Fed’s San Francisco regional bank, then Fed board vice chairman.
It was in 2014, she succeeded Ben Bernanke to become the first woman to head the U.S. central
“As I prepare to leave the board, I am gratified that the financial system is much stronger than a decade ago, better able to withstand future bouts of instability,” she said in her resignation letter. “I am also gratified by the substantial improvements in the economy since the crisis,” Ms. Yellen said.