Fed: Yellen to Resign from Board When Successor Sworn In

By Jean Yung

     WASHINGTON (MNI) - Federal Reserve Chair Janet Yellen on Monday submitted

her resignation from the Board of Governors effective upon the swearing in of

her successor as chair.

     Yellen's four-year tenure as chair expires Feb. 3, and President Donald

Trump has nominated fellow Gov. Jerome Powell to replace her. The Senate is

expected to approve Powell's nomination after a confirmation hearing Nov. 28.  

     Yellen in her resignation letter singled out her predecessor Ben Bernanke

for his leadership during the financial crisis and said she felt "gratified that

the financial system is much stronger than a decade ago." 

     The economy is "close to achieving" the Fed's dual mandate of maximum

employment and price stability, she said, while sustaining this progress will

require "continued monitoring of, and decisive responses to, newly emerging

threats to financial and economic stability," she said. 

     She added she was confident that Powell "is deeply committed" to the Fed's

mission.

     Yellen, 71, was appointed to be vice chair of the Fed Board by President

Barack Obama in 2010. She previously served as the president of the San

Francisco Fed from 2004 to 2010 and before than on the Fed Board from 1994 to

1997. 

     Yellen's resignation was largely expected, following a tradition of Fed

chairs leaving the board upon the end of their term despite the possibility of

serving out the rest of their 14-year governor terms. 

     If Trump does not nominate any other candidates to the Fed Board between

now and when Powell is sworn in, Yellen's departure would leave the board with

just three members, less than half of its full complement of seven. 

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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