Donald Kohn, the vice chairman of the Federal Reserve, will step down from the post when his term ends in June, according to a report from The Wall Street Journal.
Kohn helped lead the stress tests of major financial institutions and directed the Board's ongoing efforts to increase the Fed's transparency. He has also been leading an international effort within the Bank for International Settlements to help central banks focus on key issues and responses to the crisis.
President Barack Obama has only named one Fed governor, Daniel Tarullo. Tarullo is overseeing an overhaul of the Fed's bank supervisory unit and reappointed Ben Bernanke as Fed chairman.
Kohn’s retirement now gives President Obama a third seat to fill on the seven-member Fed board, according to the WSJ report.
Fed governors are named to 14-year terms by the president, which is subject to a Senate confirmation. Meanwhile, the chairman and vice chairman are named to four-year terms. Kohn's term as vice chairman expires June 23.