(CN) – Outgoing Federal Reserve Chair Janet Yellen on Monday submitted her resignation from the Federal Reserve board to President Donald Trump, announcing that she will leave the board when her successor is sworn in as Fed chairman.
Yellen, 71, was appointed to the board by President Barack Obama for a term ending on Jan. 31, 2024. Her term as chair expires on Feb, 3, 2018.
President Trump settled on Powell after a selection process seen as the most public in the Fed’s 104-year history. The White House said he considered re-nominating Yellen, the first woman to lead the central bank, for a second four-year term, but in the end, he opted for Powell, a Republican, over Yellen, a Democrat.
The Senate Banking Committee has scheduled its confirmation hearing for Powell’s nomination for Nov. 28. He is widely seen as a safe choice, and he has been a solid supporter of Yellen’s policies.
Because of that, it was initially unclear if Yellen would leave or stay on to complete her term on the board.
In her resignation letter, Yellen struck a gracious tone.
“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 wrote.
“I am also gratified by the substantial improvement in the economy since the crisis,” she continued. “The economy has produced 17 million jobs, on net, over the past eight years and, by most metrics, is close to achieving the Federal Reserve’s statutory objectives of maximum employment and price stability. Of course, sustaining this progress will require continued monitoring of, and decisive responses to, newly emerging threats to financial and economic stability.”
Yellen closed by promising to do her “utmost to ensure a smooth transition.”
Yellen’s decision gives Trump in his first year in office the chance to fill five positions on the Fed’s seven-member board, in addition to picking Powell to be the next Fed chairman. Board member Lael Brainard will be the only Fed board member not nominated by Trump, meaning his selections will have tremendous influence in setting the country’s future monetary policy.