Federal Reserve Chair Janet Yellen, the first woman to lead the U.S. central bank, says she will step down from its Board of Governors once her successor is sworn into office, resolving a key question as to whether she would stay on in a diminished role.
President Donald Trump has nominated Jerome Powell to replace Yellen, 71, when her term ends in February, though his chairmanship is still subject to Senate confirmation. That move bucked a long-standing tradition of presidents reappointing their predecessor’s Fed pick.
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Yellen could technically stay on as a governor even after stepping down as the institution’s leader, because her term as governor does not end until January 31, 2024. Her decision to leave will give Trump an additional spot to fill on the Fed’s seven-person Board of Governors in Washington, which already has three openings.
Yellen served as vice chair of the board of governors from 2010 to 2014 before becoming chair. She’s previously been the head of the San Francisco Fed and chair of Bill Clinton’s Council of Economic Advisers, and she’s a professor emerita a the University of California at Berkeley.
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