Administration officials are considering Adriana Kugler, an official at the World Bank, for a Fed governor job, while elevating a sitting governor to the role of vice chair.
The White House returned to a longstanding pattern in which presidents reappoint the same leader of the Federal Reserve regardless of partisan identity.
The Biden administration has argued that its infrastructure and broader economic package will slow rapid price increases. But that will take time.
Mr. Powell is facing down progressive pushback and an ethics scandal as the White House considers his future.