Trumped! Yellen to step down from Fed chair's post

In a letter to the president, Yellen said on Monday she would "do my utmost" to make sure that there is a smooth transition to Jerome Powell, who was tapped by Trump on November 2 to become the next Fed leader after the president decided not to offer Yellen a second term.

Yellen's decision gives Trump in his first year in office the chance to fill five positions on the Fed's seven-member board, in addition to picking Powell to be the next Fed chairman.

Board member Lael Brainard will be the only Fed board member not nominated by Trump, meaning his selections will have tremendous influence in setting the country's future monetary policy. Powell's confirmation hearing is scheduled for next week before the Senate Banking Committee. Powell, at one time the only Republican on the Fed board, is not expected to encounter major hurdles in winning confirmation to the chairman's job. He has been on the Fed board since 2012.

Yellen's four-year term as Fed chair ends on February 3.

But she could have chosen to remain on the board until her term as a board member ended in January 2024.

At the moment, the board has three vacancies including the No. 2 spot of vice chairman. The president earlier this year tapped Utah financier Randal Quarles to be vice chairman for supervision. The administration has not announced selections for the other openings. But last week, the Wall Street Journal reported that Mohammad El-Erian, the former chief executive at Pacific Investment Management Co. (PIMCO), was one of several candidates being considered for the vice chairman's job.

It was also reported that Kansas State Banking Commissioner Michelle Bowman was being considered for the Fed board seat reserved for someone with community banking experience.