A possible Janet Yellen exit could lead the Fed to downsize its $4.5 trillion balance sheet soon, Goldman says.
It could have been worse.
When Janet Yellen was sworn in as the chair of the US Federal Reserve three years ago this month, she made history.
"I'm not going to give the incoming president advice about how to conduct himself in policy," Fed Chair Janet Yellen said Wednesday.
The US Federal Reserve on Wednesday raised interest rates for the first time in a year, and only the second time since the 2008 financial crisis. The US central bank also predicted three further rates increase in 2017, up from previous expectations of two rate hikes.
Janet Yellen has confirmed she will serve her full term until 2018 as chair of the Federal Reserve, while readying markets for an interest rate rise to come "relatively soon".
Over the weeks and months ahead, markets will watch Fed Chair Janet Yellen and President-elect Donald Trump to see if she resigns, he asks her to resign or they find a way to coexist.
Her interest in running a "high-pressure economy" threatens to add to an increasingly divisive climate at the U.S. central bank.