Federal Reserve Governor Christopher Waller recently interviewed for the position of Fed chair with President Donald Trump, with discussions centering on the labor market and strategies to stimulate job creation. The interview took place at the White House, shortly before Trump addressed the nation about the economy. Attending the conversation were Treasury Secretary Scott Bessent, Chief of Staff Susie Wiles, and Deputy Chief of Staff Dan Scavino.
Waller’s interview is part of a broader search for a new Fed chair. Notably, Federal Reserve Governor Michelle Bowman is no longer in the running. Rick Rieder from Blackrock is scheduled for an interview at Mar-a-Lago later in the year. Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh have also been interviewed.
Despite Trump’s positive comments about Waller, including their past interactions, there is no clear indication that Waller is a frontrunner for the position. The ongoing interviews suggest that the selection process remains organized and undecided. In a recent statement, Trump expressed a desire for the next Fed chair to support lower interest rates while emphasizing the importance of ongoing consultations.
Waller also spoke with CNBC earlier this week, where he indicated his belief that interest rates could potentially decline substantially due to anticipated decreases in inflation and concerns in the job market. His dissent in July regarding the Fed’s decision to hold rates has drawn attention as cuts in rates were initiated at the subsequent meeting.
The recent November jobs report indicated an increase in the unemployment rate to 4.6% from 4.4%, with payroll growth significantly slowing.
Why this story matters:
- The selection of the Fed chair can significantly impact monetary policy and economic outlook.
Key takeaway:
- Waller’s discussions with Trump reflect ongoing concerns regarding job creation and economic growth.
Opposing viewpoint:
- Critics may argue that the President’s influence on the Fed could compromise its independence in setting rates.
