Trump leaning towards nomination of Fed Governor Jerome Powell as next head of central bank

Trump is considering Powell (above), as well as Stanford University economist John Taylor, for the post.
Trump is considering Powell (above), as well as Stanford University economist John Taylor, for the post.PHOTO: REUTERS

WASHINGTON (REUTERS) - President Donald Trump is leaning toward nominating Federal Reserve Governor Jerome Powell to be the next head of the US central bank, Bloomberg News reported on Friday (Oct 27), citing three unnamed people familiar with the matter.

Bloomberg said its sources cautioned that a final decision had not yet been made and that Mr Trump could change his mind.

Mr Trump has said he has been considering Mr Powell, as well as Stanford University economist John Taylor, for the post. He also has said he has not ruled out renominating current Fed Chair Janet Yellen, whose term expires in February.

He is expected to announce his pick, which would need to win Senate approval, before he departs on a trip to Asia on Nov 3.

Mr Trump had been working from a short list of five candidates that included his top economic adviser, Mr Gary Cohn, and former Fed Governor Kevin Warsh.

A senior administration official said on Wednesday that Mr Trump was unlikely to nominate Mr Cohn given the importance of his role in helping to lead efforts to enact a big tax cut package. Mr Warsh's star also has faded, according to media accounts.

In an interview with Fox Business Network last Friday, Mr Trump indicated he could nominate both Mr Powell and Mr Taylor for top jobs at the central bank. A vice chair post is currently open.