President Obama plans to announce his choice of Federal Reserve Bank of San Francisco President Janet Yellen Thursday as vice chairman of the Fed's board of governors, according to two people familiar with the decision.

The president will also name Sarah Bloom Raskin, Maryland's commissioner of financial regulation, and Peter Diamond, an economics professor at the Massachusetts Institute of Technology, to the two remaining open seats on the seven-person board, according to the people, who spoke on condition of anonymity before the announcement.

The nominations are subject to Senate confirmation.

Yellen, 63, would replace Donald Kohn, a 40-year Fed veteran who announced in March that he would leave the board June 23. She was President Bill Clinton's chief economist in the 1990s and has been supportive of keeping interest rates low.

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