WATCH LIVE: Obama nominates Yellen as Fed chief

Yellen, who is now the vice chair of the Fed, emerged as the front-runner for the job after Larry Summers withdrew his name from consideration.

If confirmed by the Senate, Yellen would be the first woman to ever hold the top job at the central bank.

Senate Democrats, who broke with precedent by openly lobbying for Yellen's selection, hailed the president's decision.

“She’s an excellent choice and I believe she’ll be confirmed by a wide margin," said Sen. Charles Schumer (D-N.Y.) in a statement.

Read more on The Hill.