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At the beginning of the week, current U.S. Federal Reserve chairwoman Janet Yellen formally submitted a resignation to U.S. President Donald Trump regarding her leave from the Fed Reserve as the next chair takes the post. Yellen assumed the post during Obama’s administration back in 2014 in the middle of an ongoing economic expansion.

Earlier this month, President Trump named former investment banker Jerome Powell as the next chairman of the Federal Reserve. Aside from being an investment banker, Powell is also known to be a member of the Federal Reserve’s Board of Governors since 2012 and is known by the general public to be a policymaker. Powell was then predicted to take the position as Janet Yellen’s term ends this coming February next year.

Janet Yellen stated in her resignation letter to the president that she would to her utmost in making sure of a smooth transition to Jerome Powell as the succeeding Federal Reserve chairman. Yellen also commended Powell being chosen as her successor and stated that she feels gratified of the financial system, its improvement, and how strong is it at the moment compared to its status ten years ago adding that it would be able to withstand any instability in the future and would keep supporting American household and businesses aspirations.

While some have argued and voiced out their opinions stating that Yellen should continue keeping her position and her legacy, the majority of the public have expected Yellen to eventually step down.

The departure of the current Federal Reserve chairwoman would result into the seven-member Federal board with only three members making it the fewest in the history of the Fed and is endangering the ability of the Federal Reserve to manage the central bank’s overall operations.

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Fed Minutes

In other Federal Reserve news, the minutes of the recent Fed meeting held last October 31 until November 1 was released on Wednesday. The markets anticipated the release of the meeting minutes who wished to look for signs that the U.S. Federal Reserve is still on track for another rate hike before the end of the year.

According to the minutes of the meeting, a good number of Federal Reserve policymakers are still supporting a near-term interest rate a number of members voting to not change the current interest rates while some have commented that rate hikes in the future should be based on an improved inflation rate. The minutes also showed that some members would based their decision to agree on an interest rate hike depending on the upcoming economic data.

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