President Donald Trump is likely to pick Federal Reserve Governor Jerome Powell to replace Janet Yellen as head of the U.S. central bank, a source familiar with the matter said on Monday.
Trump is expected to announce his choice on Thursday, a White House official said separately.
Powell, Yellen and Stanford University economist John Taylor are among those on the Republican president`s short list.
By picking Powell, a Fed governor since 2012, Trump would get a combination of a change in leadership with the continuity offered by somebody who has been a part of the Yellen-run Fed that has kept the economy and markets steady in recent years.
Powell, 64, has supported Yellen`s general direction in setting monetary policy, and in recent years has shared her concerns that weak inflation justified a continued cautious approach to raising rates.
The main challenger is Taylor, a favorite of conservative Republicans who want the central bank to rely more on rules when setting interest rates.
Critics say that a Taylor-run Fed would run the risk of tightening policy too fast and choking off the recovery from the 2007-2009 financial crisis and recession.
The Fed is expected to leave rates unchanged at the conclusion of its latest two-day policy meeting on Wednesday.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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