Treasury Secretary Scott Bessent told the president privately in recent days that ousting Jerome Powell entailed risks, including possible effects on the economy and potential legal and political obstacles.

With the unemployment rate low and inflation above the Fed's 2% target, U.S. central bank officials have been reluctant to cut interest rates from the current 4.25% to 4.5% range until it is clear that Trump's tariff policies won't lead to a fresh surge in prices.

Powell has repeatedly declined to answer questions on whether he might stay on as a governor. That reticence has complicated the decision-making for President Donald Trump and his aides as they look to revamp Fed leadership next year.