Trump will decide this week on a new Federal Reserve governor, who could also be Powell's successor.

US President Donald Trump, who is actively influencing the central bank's monetary policy, said he will decide this week who will replace outgoing Federal Reserve Governor Adriana Kugler.

"I'll make a decision by the end of this week," Trump told reporters at a White House event on Tuesday (August 5). "We'll decide whether it's permanent or whether it's four terms. You know, it's a few months."

The Federal Reserve announced last Friday (August 1) that Kugler will resign as a governor before her term ends in January. This gives Trump an earlier-than-expected opportunity to fill the Fed board with someone more sympathetic to his interest rate cut stance.

This comes as Trump repeatedly pressures the Federal Reserve and its Chairman, Jerome Powell, to lower borrowing costs.

Whoever Trump chooses for the Fed governor would likely be a successor to Jerome Powell, whose term as chairman expires in May, and could potentially meet the Trump administration's expectations for the tone of interest rate policy. Trump reiterated that he is considering four candidates for Fed chair. Earlier on Tuesday, he said Treasury Secretary Scott Bessant had made it clear he did not want to be a candidate.

Trump said the candidates he is considering include former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett.

"We are considering candidates for the chair of the Federal Reserve, and we have narrowed it down to four people," Trump said at the event on Tuesday. "Well, I can tell you, because I've already said it, there are two Kevins, and there are two other people."