Janet Yellen To Step Down From Fed After Successor Assumes Chairmanship

The first female chair of the Federal Reserve declined the option to stay on as a lower-ranking Fed official.

Federal Reserve Chair Janet Yellen announced Monday that she will leave the U.S. central bank when her term ends in February.

Earlier this month, President Donald Trump named Jerome Powell, a Republican Fed governor who worked closely with Yellen, as the next Fed chair. Powell is now up for Senate confirmation, which he is widely expected to receive.

Although Yellen’s term as chair would end once Powell takes office in February, she had the opportunity to stay on as a Fed governor until Jan. 31, 2024.

In a Monday letter to Trump, Yellen revealed that she would not be availing herself of that opportunity.

“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 and continue supporting the economic aspirations of American family and businesses,” she wrote in the letter. “I am also gratified by the substantial improvement in the economy since the crisis.”

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

“The president has great respect for Chair Yellen and her service as Chair of the Federal Reserve. He wishes her well in her future endeavors,” White House Press Secretary Sarah Huckabee Sanders said in a statement.

This story is developing.