Yellen to step down from Federal Reserve board

WASHINGTON» Janet Yellen submitted her resignation from the Federal Reserve board to President Donald Trump on Monday, announcing that she will leave when her successor is sworn in as Fed chairman.

In a letter to the president, Yellen said she would do her “utmost” to ensure a smooth transition to Jerome Powell, who was tapped by Trump on Nov. 2 to become the next Fed leader after the president decided not to offer Yellen a second term.

Yellen’s decision gives Trump in his first year in office the chance to fill five positions on the Fed’s sevenmember board, in addition to picking Powell to be the next Fed chairman. Board member Lael Brainard will be the only Fed board member not nominated by Trump, meaning his selections will have tremendous influence in setting the country’s future monetary policy.

Powell’s confirmation hearing is scheduled for next week before the Senate Banking Committee. Powell, at one time the only Republican on the Fed board, is not expected to encounter major hurdles in winning confirmation to the chairman’s job. He has been on the Fed board since 2012.

Yellen’s four-year term as Fed chair ends on Feb. 3. But she could have chosen to remain on the board until her term as a board member ended in January 2024.

At the moment, the board has three vacancies including the No. 2 spot of vice chairman. The president earlier this year tapped Utah financier Randal Quarles to be vice chairman for supervision.