President Trump sharply criticized Federal Reserve Board Chairwoman Janet Yellen (pictured) during his presidential campaign, but has spoken more positively of her in recent months and said he is considering keeping her in the job. | Mark Wilson/Getty Images Trump to interview Yellen as final decision nears on Fed chair

President Donald Trump plans to formally interview Janet Yellen this week about potentially staying on as Federal Reserve chair, two people familiar with the matter said.

The meeting will come as Trump nears a decision on filling the world’s most important central banking job. Many Republicans on Capitol Hill want Trump to move on from Yellen, whose first term ends in February, and choose a more traditionally conservative Fed chair.


Trump sharply criticized Yellen during the presidential campaign, but has spoken more positively of her in recent months and said he is considering keeping her in the job. “I like her and I respect her, but I haven't made that decision yet,” Trump told reporters last month.

New presidents typically renominate Fed chairs they inherited for an additional term. But Trump tends to prefer changing personnel and policies left over from his predecessor.

An exact time for the Trump-Yellen meeting is not yet set but is expected this week, people familiar with the matter said. The meeting could slip to next week depending on the president’s schedule, the people said.

The White House is hoping to wrap up the Fed decision-making process soon and send a nominee to Capitol Hill in time to have confirmation hearings and votes before Yellen’s term expires.

Former President Barack Obama nominated Yellen in October 2013. In 2014 she become the first woman to lead the century-old central bank, which sets interest-rate policy that affects global markets and everything from credit card to mortgage rates. The Fed is also among the most important regulators of the nation’s largest banks.

Other finalists for the job include Fed Governor Jerome Powell, a favorite of Treasury Secretary Steven Mnuchin, who is leading the selection process; former Fed Governor Kevin Warsh; Stanford economist John Taylor; and National Economic Council Director Gary Cohn. Dark-horse candidates could also emerge, though Yellen is expected to be the last of the major interviews for the Fed chair job, people close to the matter said.

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Those in favor of a Yellen renomination argue she is both the most experienced among the final candidates and the most likely to pursue a gentle approach to raising interest rates. That approach could help GOP hopes to boost the economy ahead of the 2018 midterms and Trump’s potential reelection bid in 2020.

Powell, Warsh and especially Taylor could be more inclined to raise rates faster and shrink the Fed’s balance sheet in ways that could weigh on asset prices and slow the economy. Trump has gone back and forth in his comments about Yellen and her record at the Fed but once described himself as a “low-rates guy.”

The stock market continues to hit record highs, a fact constantly touted by the president, and keeping Yellen in the job would likely be welcomed by investors around the world. The other finalists would also likely be palatable to Wall Street, though there could be more of an adjustment period to a new chair’s policies and communication style.