U.S. Federal Reserve Chair Janet Yellen said on Monday she would step down as Fed governor once her successor swears in.
"Janet L. 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 on Monday.
Yellen was appointed by then President Barack Obama in 2014 as the chair of the U.S. central bank. The Fed chair also serves as the governor of the Fed board.
Yellen's term as Fed chair expires in February, 2018, while her term as Fed governor will end in January, 2024. President Donald Trump earlier this month appointed current Fed Governor Jerome Powell as the next Fed chair.
"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 business," said Yellen in her resignation letter on Monday.
"I am confident that my successor as Chair, Jerome H. Powell, is deeply committed to that mission and I will do my utmost to ensure a smooth transition." said Yellen.
Upon Yellen's resignation, Trump needs to pick four nominees to fill the vacancy of the Fed board which includes a vice chair post.