WASHINGTON — Nellie Liang, director of the Federal Reserve's Division of Financial Stability, has announced her retirement after 30 years with the central bank.

Liang, who joined the Fed as an economist in 1986, was a major player in the development of the first Supervisory Capital Assessment Program in 2009 — a precursor to the Comprehensive Capital Analysis and Review stress tests, which are widely viewed as among the most consequential supervisory innovations to emerge from the financial crisis. Liang was appointed to the head of Financial Stability when that office was created in 2010.

Fed Chair Janet Yellen praised Liang's decades of service and contributions to financial stability since helming the new office.

"Nellie's perceptive leadership and thoughtful analyses have contributed tremendously to the advancement of the Federal Reserve's efforts to rigorously assess financial stability risks and incorporate them into the development of both monetary and supervisory policy," Yellen said in a statement. "I have deeply appreciated her service and wise counsel, especially during the financial crisis and, in the years afterward, as the founding director of the Board's Division of Financial Stability."

The Fed says it will begin a search for Liang's successor.

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