U.S. Federal Reserve Chair Janet Yellen will leave her seat on the central bank's Board of Governors once Jerome Powell is confirmed and sworn in to replace her as head of the Fed, the central bank and Yellen announced on Monday.

Keeping with past practice, Yellen in a letter to President Donald Trump said she would resign when Powell is sworn in, and in the meantime "will do my utmost to ensure a smooth transition."

Powell's Senate confirmation hearing is scheduled for next week.

Yellen's four-year term as Fed chair ends on Feb. 3. But she could have chosen to remain on the seven-member Fed board. Her term as a board member would not have ended until January 2024.

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