President Donald Trump is reportedly set to interview U.S. Federal Reserve Governor Christopher Waller for the position of Fed chair on Wednesday.
Waller Seen Favoring Further Rate Cuts
The selection process is described as fast-moving, with the possibility of meetings being rescheduled or canceled as Trump continues to deliberate, The Wall Street Journal reported on Tuesday, citing sources familiar with the matter.
Waller has been supportive of continuing interest rate cuts, including a cut at the Fed’s December meeting, citing rising risks from a weakening labor market. He said labor conditions are his top concern and downplayed inflation risks, adding he is not worried about inflation accelerating or inflation expectations increasing significantly.
The leading candidates to succeed Jerome Powell combine deep institutional experience with market-friendly views and are generally seen as leaning more dovish as Trump looks to steer the Fed in a new direction. In August, it was reported that Waller, Kevin Hassett, Michelle Bowman, Rick Rieder, and Kevin Warsh were the top contenders.
Trump, in another interview with WSJ last week, said that the next Fed chair should seek his input on interest rate decisions, adding that he does not expect the chair to adopt his views, but believes they should at least be considered.
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Polymarket Leans In Favor Of Warsh For Fed Chair
Waller’s interview comes after Trump indicated that he was considering two primary candidates for the role. In a recent interview, Trump mentioned that he was deciding between National Economic Council (NEC) Director Kevin Hassett and former Federal Reserve governor Kevin Warsh.
Warsh has recently emerged as the frontrunner for the position. His probability of being nominated by Trump has risen to 46% from 11% in just one week, according to Polymarket traders.
Despite being seen as a strong candidate, Hassett has downplayed the influence of Trump on interest rate decisions, should he be appointed as the Fed chair. He stated that Trump’s views would not carry much weight in the decision-making process for interest rates, should he be appointed as the Fed chair.
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