The White House said on Monday that vice chairman of the U. S. Federal Reserve Donald Kohn has announced he will retire in June.

The New York Times reported that according to the White House 67 years old Kohnwould leave at the end of his four-year term and the decision to retire was "his alone."

Fed's board of governors, a seven-member board, is already down by two members and Kohn's departure will be the third vacancy. Randall Kroszner left in January 2009 and Frederic Mishkin left in August 2008.

Due to an amendment to the Federal Reserve Act put into place after the Sept. 11 terrorist attack, currently, the Fed is able to take board actions with fewer than five members voting.

In March 2008, the Fed evoked that privilege in a 4-0 vote to help fund the JPMorgan Chase purchase of Bear Stearns in a quickly arranged fire sale.

Tthe Times said that Fed Chairman Ben Bernanke has said that he would give up the under-five-member voting clause if the Fed maintains the ability to create lending programs when the market required additional liquidity. (With Inputs from Agencies)