Donald Trump has chosen Federal Reserve board member Jerome Powell to become the next chair of the US central bank.

The US president said Mr Powell, who will replace Janet Yellen, has the “wisdom and leadership” to guide the economy through any challenges it may face.

He called 64-year-old Mr Powell, “strong,” ”committed” and “smart”.

Mr Trump announced the nomination at a White House ceremony. If confirmed by the Senate, Mr Powell would succeed Mrs Yellen when her term ends in February.

At the ceremony in the Rose Garden, Mr Powell vowed to work to make sure the Fed stays “vigilant and prepared to respond to changes” in the market.

He said the US economy has made “substantial progress” since the 2008 financial crisis and the financial system is much stronger.

The Federal Reserve understands that monetary decisions “matter for American families”, he added.

Mrs Yellen is the first woman to lead the Federal Reserve and is the first in that post in decades to be denied a second term after completing a first.

Although Mr Trump praised Mrs Yellen and thanked her for her service, she did not participate in the announcement – a departure from how previous presidents chose to announce a new Fed nominee.