WASHINGTON (AFP) - US President Donald Trump will name the next chair of the Federal Reserve next week, the White House said, a choice that could have far reaching implications for his economic agenda.

"I can confirm that the president plans to make an announcement on that next week. But beyond that, I don't have any other details to add," said spokesman Sarah Huckabee Sanders.

In the running are current Fed chair Janet Yellen, who has kept benchmark interest rates low, fuelling Trump's much-vaunted stock-market surge.

But Stanford University economist John Taylor, who is known to favour higher interest rates, is also a possible pick.

That tighter monetary policy has supporters across the Republican party, which has traditionally been concerned about preventing inflation.

Another candidate, Kevin Warsh, is a former Fed governor, a proponent of higher interest rates and a son-in-law of Trump associate Ronald Lauder.