Federal Reserve Chairwoman Janet Yellen said Monday she won’t stay on at the central bank after President Trump’s nominee to replace her is confirmed, and will turn down the option of remaining at the Fed and voting on monetary policy as a member of the Board of Governors.
In a letter announcing her intention to step down, Yellen expressed confidence in Trump’s nominee, current Fed Governor Jerome Powell. She claimed the economy is near full employment and 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 families and businesses.”
Yellen’s term as governor would have run through 2024.
Some progressives had urged her to stay on at the Fed, to provide a counterweight to Trump-appointed officials. Trump has called for undoing many of the post-crisis financial rules that Yellen helped implement.
With Yellen’s departure, Trump’s transformation of the central bank will be accelerated even further. Today, the seven-member board is missing three appointees. Besides Yellen and Powell, one of the four current governors, vice chairman for supervision Randal Quarles, is a Trump appointee.
