Federal Reserve Board Chair Janet Yellen will be stepping down from the central bank’s powerful board of governors after President Donald Trump refused to reappoint her to a second term as the central bank’s first female leader.
Yellen is the first Fed chair in recent memory not to be reappointed by the president despite a solid four-year term. Trump announced earlier this month that he was replacing her with Fed governor and former Carlyle Group executive Jerome Powell.
Trump now has four remaining seats on the central bank’s seven-member board to appoint. The policy-setting Federal Open Market Committee may be on track for its biggest year of turnover since 1936.
The announcement ends some speculation — and for some, hope — that Yellen might stay on as a Fed board governor, which she was entitled to do under Fed rules.
“Yellen submitted her resignation Monday as a Member of the Board of Governors of the Federal Reserve System, effective upon the swearing in of her successor as Chair,” the Fed said in a statement.
The Fed Up coalition, a group of community organizations who have pressured the central bank to pay more attention to low-income communities, bemoaned Yellen’s loss in a statement.
“Janet Yellen’s retirement is a loss for working people across the country,” Shawn Sebastain, the group’s codirector, said in a statement.
“Yellen showed remarkable leadership and spoke out about economic inequality, racial disparities in the economy, the role of women in the workplace, and the need for more diversity at the Fed,” he added, urging her to stay engaged in the public debate over the economy even after returning to private life.