President Trump says Yellen, Cohn are contenders for next Fed Chair

U.S. President Donald Trump said on Tuesday that current Federal Reserve Chair Janet Yellen and the White House National Economic Director Gary Cohn are among contenders to lead the central bank next year.

In an interview with the Wall Street Journal on Tuesday, Trump said

Yellen, whose term as Fed Chair expires next February, has done "a good

job" and he has "a lot of respect for her."

"I'd like to see rates stay low. She's historically been a

low-interest-rate person," he said, adding Yellen is still in the

running to serve a second four-year term as head of the central bank.

Trump said Cohn is also on the list of candidates to lead the central

bank, although Cohn and other White House officials have said he is

focused on his current job.

"I've known Gary for a long time, but I've gained great respect for

Gary working with him, so Gary certainly would be in the mix," said the

president.

Earlier this month, Trump nominated Randal Quarles, an

investment-fund manager and former U.S. Treasury official, as vice chair

for supervision of the Fed, taking the first step to fill the three

vacancies in the Fed's seven-member board.

Yellen hasn' t said whether she would step down from the Fed board

when her term expires next year or she would like to serve another term

as Fed Chair.

"I'm very focused on trying to achieve our congressionally mandated

objectives, and I really haven' t had to give further thought at this

point to this question," She told lawmakers at a hearing earlier this

month.

Trump said he probably wouldn't announce his nominee for next Fed

Chair until the end of the year, noting it's still early to make that

decision.

The Fed is starting its two-day policy meeting on Tuesday and it's

expected to leave its benchmark interest rates unchanged after

conclusion of the meeting.

The Fed last month raised the benchmark interest rates for the fourth

time since December 2015 and unveiled a plan to trim its massive

balance sheet later this year.

Most economists expect the central bank to begin shrinking its

balance sheet in September, with a further rate hike in December,

according to the latest survey conducted by the Wall Street Journal.