Yellen resigns from US Fed highlighting its non-partisan mission


Janet Yellen has highlighted the US Federal Reserve’s non-partisan mission as she resigns from the board of governors, finishing her term six years early.

President Donald Trump had already ousted Yellen as chair of the central bank, but her term on the board was set to last until 2024. She was appointed deputy governor the Fed in 2010, before Barack Obama promoted her to chair in 2014.

Trump broke with bipartisan tradition for central bank chairs to be reappointed for a second term.

In a letter addressed to Trump, Yellen said would leave the board when her successor, former Wall St banker Jerome Powell, a Republican, becomes chair in February.

Yellen said she had been proud to work alongside many dedicated colleagues, but namechecked her predecessor Ben Bernanke. She said his leadership during and after the financial crisis was critical to restoring economic prosperity and the soundness of the US financial system.

She says she is gratified that the US is in better shape to withstand future bouts of instability than a decade ago. Yellen also noted the US economy had added 17m jobs over the last eight years.

However, she warned that sustaining the central bank’s progress would require continued monitoring and “decisive responses” to emerging threats to economic and financial stability.

Powell is expected to continue on the dovish path set by Yellen, but holds less academic nous than typical US Fed appointments.

Yellen says the central bank’s public mission requires a professional and non-partisan approach and that she is confident Powell was committed to that.