Fed Chair Janet Yellen says she will leave the U.S. central bank's board when her successor is sworn in early next year.
Jerome Powell was chosen by President Donald Trump to head the Federal Reserve when Yellen's term expires. Powell must be confirmed by the U.S. Senate before he can take office, but analysts say his approach to managing interest rates is similar to Yellen's. She is credited with managing the economy in ways that boosted recovery from the 2007 recession and cut unemployment in half.
In her resignation letter to Trump, Yellen said she is "gratified that the financial system is much stronger than a decade ago." She also noted "substantial improvement in the economy since the crisis.”
Yellen is the first woman to lead the Fed, and was a member of its board of governors before taking the leadership role. Her term on the board does not officially expire until 2024, and she could have stayed on if she wished to do so.
Candidate Trump criticized Yellen during his campaign, but praised her work after he became president.
Yellen has served as vice chair of the Fed, president of the Federal Reserve Bank of San Francisco, and head of President Bill Clinton's Council of Economic Advisers. She has researched and taught economics at the University of California at Berkeley.