Powell, whose term ends in May 2026, was nominated by Trump to lead the U.S. central bank during his first administration.

When asked abroad Air Force One whether he has a top choice to succeed Powell, Trump told reporters, "I have two or three top choices," but declined to provide further information.

The Wall Street Journal reported last week that Trump is considering former Fed governor Kevin Warsh and National Economic Council director Kevin Hassett as replacements. Treasury Secretary Scott Bessent is also being pitched as a potential candidate, according to the newspaper, which also listed former World Bank President David Malpass and Fed governor Christopher Waller as potential nominees.

According to the Journal, Trump has toyed with the idea of selecting and announcing a replacement as early as September or October.

However, Bessent told Bloomberg TV on Monday that the Trump administration is considering using the next expected Federal Reserve Board of Governors vacancy in early 2026 for appointing a successor.

Since returning to the White House in January, Trump has criticized Powell and other Fed governors for deciding not to lower interest rates, which are currently in the 4.25%-4.50% range.

Fed chairs have long been seen as insulated from presidential dismissal for reasons other than malfeasance or misconduct, but Trump has threatened to test that legal premise with frequent threats to fire Powell.

A Supreme Court ruling in May eased concerns that Trump could fire Powell as the justices called the Fed "a uniquely structured, quasi-private entity."