US President Donald Trump has announced that he plans to name his choice for chairman of the Federal Reserve on Friday morning.
The decision follows a year of aggressive criticism of current Fed Chair Jerome Powell, whose term as head of the US central bank ends in May.
"I'll be announcing the Fed chair tomorrow morning," Trump told reporters on Thursday.
"It's going to be somebody that is very respected, somebody that's known to everybody in the financial world."
Trump hinted that the nominee is someone who "could have been there a few years ago," fuelling speculation that he has chosen Kevin Warsh, a former Fed governor.
Tensions have mounted as the president has pressured the Fed to slash interest rates to fuel economic growth, while Powell has maintained a more judicious approach.
This month, the Fed has received subpoenas from the Justice Department following a campaign by the president over renovation costs at the bank’s headquarters.
In response, Powell has issued a rare statement saying: "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public".
The search, led by Treasury Secretary Scott Bessent, has narrowed to four finalists: Kevin Warsh, Christopher Waller, Rick Rieder, and Kevin Hassett.
While Powell's term as chair ends in three months, his seat on the board of governors runs through 2028.
If he chooses to remain on the board, it could block Trump from controlling a majority of seats.
At a news conference on Wednesday, Powell declined to say if he will stay on the board, but offered advice to his successor: "Don’t get pulled into elected politics — don't do it".
