Janet Yellen ended the suspense on Monday, announcing that she will leave the Federal Reserve entirely, rather than stay on the board as governor once her replacement is in place.
While Yellen will be replaced in February 2018, likely by President Trump’s nominee Jerome Powell, her term as a member of the Board of Governors was set to expire in 2024. But Yellen has declined to stay and will leave both positions.
In her resignation letter, Yellen stated: "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 families and businesses.”
Yellen has a degree in economics from Brown University and a Ph.D. in economics from Yale University. She has also been granted honorary degrees: an honorary doctor of law degree from Brown and an honorary doctor of humane letters from Bard College in 2000.
She held a few posts with the Fed. Most recently, in 2014, Yellen became the first woman to become chair of the Federal Reserve board. She was vice chairman of the Federal Reserve Board of Governors from 2010 to 2014. Yellen was president of the Federal Reserve Board of San Francisco from 2004 to 2010 and governor on the Fed Board of Governors from 1994 to 1997. She was also an economist with the Federal Reserve's Board of Governors in 1977 and 1978.
Yellen is widely considered a “dove,” preferring gradual rate hikes during her tenure as Fed chair. While she was Federal Reserve chair, the U.S. economy was recovering from the Great Recession, and she helped steer decisions such as unwinding the massive stimulus measures implemented by her predecessor, Ben Bernanke, to boost the economy.
She has also worked in academia, as a lecturer at the London School of Economics and Political Science, a faculty member of the University of California, Berkley, and an assistant professor at Harvard University.
Yellen has authored numerous articles, and as CEO of the Federal Reserve Bank of San Francisco, Yellen voiced concerns about high housing prices before the major housing crash.