Trump’s choices largely down to 2

WASHINGTON» President Donald Trump has largely settled on nominating either former investment banker Jerome “Jay” Powell or Stanford University economist John Taylor to be chairman of the Federal Reserve, three people briefed on the process said, setting the stage for what could be one of the most consequential economic decisions of his administration.

The two men could have much different approaches to running the U.S. central bank, which sets the direction for interest rates and also plays a lead role in financial regulation.

Trump is well-known, though, for changing his mind on nominations late in the process.

Powell is a Fed governor who has served for five years and has supported current chair Janet Yellen’s cautious pace of raising interest rates.

Previously he worked at a Washington think tank called the Bipartisan Policy Center, the investment firm Carlyle Group, and held senior roles in the Treasury Department during the George H.W. Bush administration. He has a law degree, however, and isn’t a Ph.D. economist, which would be unusual for someone selected to lead the U.S. central bank.

Taylor, a conservative economist who is beloved by congressional Republicans for years, is considered more hawkish on fighting inflation, and many economists believe he would move more quickly to raise interest rates than Powell.

He has also criticized Yellen for going too far in trying to help stimulate the economy, warning that it could lead to out-of-control inflation.

In addition to his years at Stanford, Taylor held a senior role in the Treasury Department during the George W. Bush administration, focused on international affairs.