ABBA First Mortgage News

Fed Reserve Chair Janet Yellen ready to step down

Federal Reserve Chair Janet Yellen announced that she plans to resign from the Fed Board of Governors. Previously, Department of the Treasury Secretary Steven Mnuchin mentioned Yellen was still unsure whether she would serve out the remainder of her time on the Board of Governors after stepping down as Fed Chair. Now, Yellen, who was appointed to the Board by former President Barack Obama to serve until January 21, 2024, announced she will resign upon the swearing in of her successor as Chair. “It has been my great privilege and honor to serve in the Federal Reserve System over the course of three eventful decades – as a member of the Board of Governors, as President of the Federal Reserve Bank of San Francisco, and, most especially, as Vice Chair and Chair of the Board,” Yellen wrote in her resignation letter. President Trump recently tapped Federal Reserve Governor Jerome Powell to serve as the next Fed chair. Powell is now in the confirmation process. Yellen’s term as Chair ends on February 3, 2018. She also serves as Chair of the Federal Open Market Committee. It is unclear what this turn of events will mean for the federal funds rate in 2018. Capital Economics recently released its prediction, saying next year’s change in Fed Chair won’t matter, rates will still be raised four times. Source: HousingWire


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