Yellen to Leave Fed Board When New Central Bank Chief Takes Over -- Update

By David Harrison and Harriet Torry Features Dow Jones Newswires

Federal Reserve Chairwoman Janet Yellen said Monday she would resign as a member of the Fed's board of governors once her successor as Fed leader has been sworn in.

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Although Ms. Yellen's four-year term as chairwoman ends in February 2018, her term on the Fed board doesn't expire until 2024. President Donald Trump has nominated Jerome Powell to succeed her. Mr. Powell currently serves as a member of the Fed's board of governors.

A decision to stay on at the Fed after her time as its leader is up would have been unusual but not unprecedented. Former Fed Chairman Marriner Eccles stayed at the Fed as a governor for three years after his term expired in 1948, when President Harry Truman replaced Mr. Eccles with Thomas McCabe.

In a resignation letter addressed to Mr. Trump, Ms. Yellen said she had been privileged to serve at the central bank over "three eventful decades."

"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 families and businesses, " she said. "I am also gratified by the substantial improvement in the economy since the crisis."

Ms. Yellen said she would "do my utmost" to ease the transition to Mr. Powell.

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Ms. Yellen previously served as Fed vice chairwoman and as president of the San Francisco Fed.

Write to David Harrison at david.harrison@wsj.com and Harriet Torry at harriet.torry@wsj.com

(END) Dow Jones Newswires

November 20, 2017 14:39 ET (19:39 GMT)