The decision is not final and is expected to hinge on the outcome of the midterm elections, sources familiar with the matter told Axios. Yellen’s successor will need to be confirmed by the Senate, posing a challenge if the Republican Party takes control of the upper chamber.
Officials are also considering whether Brian Deese, the director of the National Economic Council, could leave in the new year, according to the outlet.
Deese, speaking at the Economic Club of D.C. on Tuesday, said he had “no plans to leave” the Biden administration.
“I’ve got my head down, and I’m certainly fully, fully absorbed in the work we’re doing,” Deese added.
Treasury spokeswoman Lily Adams said Yellen has no plans to leave.
The White House did not respond to a comment request.
The report comes as polls indicate that President Joe Biden’s handling of the economy remains a political liability for Democrats.
In particular, Yellen has come under fire for her approach to rising inflation, conceding during an interview with CNN this summer that she “was wrong” on the direction prices would take. The secretary warned last year of only a “small risk.”
Inflation came in above forecasts in August, at 8.3% for the prior 12 months.
The Federal Reserve has continued to hike interest rates in response.