Powell's mandate expires in eleven months. Lately, the president has been toying with the idea of choosing and presenting the successor as early as this summer or during the autumn, according to several sources to the newspaper.
Since the new Fed director will not take office until May next year, it is significantly earlier than a traditional transition period of three to four months.
An early announcement would give the incoming chief the opportunity to influence market expectations from the back seat relatively soon as a way to undermine Powell, writes The Wall Street Journal.
Trump's irritation over Powell is well-known after repeated criticism that the Fed is far too slow in lowering the interest rate.
Powell's line is based on small cautious steps to avoid misjudging the inflation trend. Right now, it's a lot about waiting and seeing how Trump's tariff policy affects prices and the labor market.
Among the people Trump is considering as the new director are the former Fed member Kevin Warsh, the White House economic adviser Kevin Hassett, and Finance Minister Scott Bessent, according to the information.
Earlier in June, the Fed decided to leave the interest rate unchanged at 4.25-4.50 percent. The bank expects two cuts before the end of the year.
