U.S. Treasury Secretary Steven Mnuchin would prefer that Federal Reserve Board governor Jerome Powell be the regulator's next chair, Politico reported Oct. 11, citing "people close to the selection process."

Mnuchin has reportedly strongly recommended Powell to President Donald Trump. According to Politico, Powell is considered "a safe pick."

The term of Fed Chair Janet Yellen expires in February 2018. Trump is considering renominating her, although Powell, National Economic Council Director Gary Cohn, and Hoover Institution fellow Kevin Warsh are said to also be on the shortlist. In addition, Stanford University economist John Taylor has reportedly been interviewed for the post.

A White House official told Politico that the ability to "work well with other members of the [Fed] board" is a criterion in the selection process. Politico notes that Randal Quarles, recently confirmed as the Fed's vice chair of supervision, is a friend of Powell.