Federal Reserve Governor Christopher Waller has affirmed his commitment to highlighting the significance of central bank independence during an upcoming discussion with President Donald Trump. As one of five finalists considered for the role of Federal Reserve Chairman after Jerome Powell’s term concludes in May, Waller emphasized this stance during an interview on CNBC.
In a conversation with CNBC’s Steve Liesman, Waller stated, “Absolutely,” when questioned about whether he would stress the importance of Fed independence in the meeting with Trump. He shared insights at the Yale CEO Summit, noting his two decades of experience supporting the principle of central bank autonomy. “I have a long paper trail on this,” he added, underlining his dedication to the topic.
Trump’s interactions with the Federal Reserve have often stirred controversy, as the president has openly criticized Powell and suggested the Fed is too slow to reduce interest rates. Trump’s public speculation about potentially dismissing Powell has contributed to investor concerns regarding a future chairman who might align more closely with presidential views on monetary policy.
Waller acknowledged that Trump publicly expresses his thoughts on Fed decisions via platforms like Truth Social, making the president’s stance on monetary issues abundantly clear. He advocated for the traditional channels of communication between the Federal Reserve and the White House, suggesting that the regular breakfast meetings between the Fed chair and the Treasury Secretary are more appropriate than direct engagements with the president.
In his analysis of current interest rates, Waller indicated that they are still positioned about 50 to 100 basis points higher than a neutral rate, a level that is neither stimulative nor restrictive. He noted, “We still got some room that we could bring things down,” highlighting the potential for further monetary policy adjustments.
While Waller is a contender for the top Fed position, National Economic Council Director Kevin Hassett has emerged as a prominent candidate, although some influential voices close to Trump have expressed reservations about his nomination. Additionally, former Fed Governor Kevin Warsh remains on the shortlist for consideration.
Reflecting on the competition, Trump had remarked to The Wall Street Journal last week, “I think you have Kevin and Kevin. They’re both — I think the two Kevins are great,” indicating a favorable view toward both Hassett and Warsh as potential successors to Powell.
