Federal Reserve Governor Kevin Warsh informed President Obama today that he plans to resign as of March 31.
In his three paragraph letter he wrote that he was "honored to have served at a time of great consequence.''
Before joining the Fed in 2006, he was special assistant to President Bush for economic policy and executive secretary of the White House National Economic Council. His term is set to expire in January 2018.
He has been a close ally of Federal Reserve Chairman Ben Bernanke though he recently criticized the board's decision to buy up many bonds to stimulate the economy.
According to an anecdote in a book about the Fed's role in the economic recovery when Warsh was named to the Fed White House ethics advisers recommended he get the mortgage for his $2.3 million Georgetown townhouse from the White House Federal Credit Union to avoid any appearance of favoritism from lenders over which the Fed has jurisdiction.