Federal Reserve board member Randal Quarles announced Monday that he is resigning at the end of December, leaving another vacancy on the central bank for President Joe Biden to fill.

Quarles had served as the Fed's first vice chair overseeing banking supervision, but his four-year term in that position ended in mid-October. He could have remained on the board as a governor until January 2032.

Biden has yet to appoint someone to the vice chair role, and has several other decisions to make about the Fed's leadership including whether to reappoint Jerome Powell to the top position after his four-year term expires February 5.

Biden has been under intense pressure from the liberal wing of his Democratic party to put officials in those positions who will be tougher on banks.

However, Treasury Secretary Janet Yellen has praised Powell's handling of the economy amid the Covid-19 crisis, and reportedly supports him for a second term.

US President Joe Biden has the opportunity to make appointments to several top Federal Reserve positions, including chair and vice chair
US President Joe Biden has the opportunity to make appointments to several top Federal Reserve positions, including chair and vice chair AFP / Daniel SLIM

Powell served on the board when Yellen led the central bank of the world's largest economy, but Biden's predecessor Donald Trump did not reappoint her to the post.

Beyond determining who will lead the Fed, Biden has to fill a current vacancy on the board, while the term of Vice Chair Richard Clarida ends January 31.

Powell was at the White House on Thursday, reportedly to meet with Biden, as was Lael Brainard, the lone remaining Democrat on the Fed board.

In his letter to Biden, Quarles did not specify the reason for his departure, simply saying that "given the completion last month of my term as Vice Chairman for Supervision of the Board, I intend to resign my position as a Governor of the Federal Reserve during or around the last week of December of this year."

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