US Federal Reserve Picks: Who will be the next Fed chair?

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The U.S. Federal Reserve is keeping rates on hold for now, but the real news is still under wraps: who is Donald Trump going to nominate to lead America's central bank? Our Washington Correspondent Daniel Ryntjes has the story.

Normally a Fed Chair, who's completed one term at the helm of America's central bank, is expected to be re-nominated by the President. On the presidential campaign trail, Donald Trump slammed Janet Yellen's job performance, but recently, he's been full of praise.

DONALD TRUMP US PRESIDENT "I think Janet Yellen is excellent. I think she is excellent. I didn't say that. I think she is excellent."

JEROME POWELL CURRENT FED GOVERNOR But of course, Janet Yellen was appointed by a Democrat, former President Barack Obama. Most people predict Jerome Powell will be chosen. He's been a Fed governor since 2012 and crucially, he's a Republican.

GEORGE SELGIN SENIOR FELLOW, CATO INSTITUTE "He's likely to not rock the boat very much. I don't personally think that's the best criteria for choosing a Fed Chair, who's going to around, after all, for quite a few years, however it's one we can understand as being prudent from the White House's point of view."

JOHN TAYLOR PROFESSOR OF ECONOMICS, STANFORD UNIVERSITY John Taylor is also considered a front-runner, but one who would likely "rock the boat", perhaps by raising interest rates faster and by dismantling some of the unconventional monetary policies, established in response to the last financial crisis.

KEVIN WARSH FORMER FED GOVERNOR A former Fed governor, Kevin Warsh is seen as the biggest risk because he's been a consistent critic of Yellen's low-rate stimulus policies.

GARY COHN TRUMP'S CHIEF ECONOMIC ADVISOR Trump's current chief economic advisor, Gary Cohn, is widely seen as being out-of-favor with Trump and he's a businessman not an economist by trade.

SUMIT AGARWAL PROFESSOR OF FINANCE, GEORGETOWN UNIVERSITY Professor Sumit Agarwal from Georgetown University's McDonough School of Business says the next Fed chair will need to respond to proposed changes to tax and spending policies under Trump.

Depending on political machinations in Congress, the final results could either disappoint and potentially deflate the markets, or if enacted, pump things up even further.

SUMIT AGARWAL PROFESSOR OF FINANCE, GEORGETOWN UNIVERSITY "Can we see a bigger economic growth like what we see in the last quarter of 3% and how will that change the Fed's stance on inflation monitoring and inflation targeting? Will they then have to clamp down and raise interest rates faster because they are worried about inflation getting out of hand?"

But for now in its latest statement, the Fed points out that inflation remains at a low level, so that absent surprises, the path of future rate hikes looks to remain gradual. Daniel Ryntjes, CGTN, Washington.