President Donald Trump is moving forward with his search for the next Federal Reserve chair, scheduling an interview with current Fed Governor Christopher Waller for Wednesday. This development, confirmed by sources familiar with the matter, adds another key contender to the shortlist for the pivotal role.
The Contenders for the Top Fed Job
The selection process is gaining momentum, though officials caution that plans remain fluid and meetings could be rescheduled as the president continues his deliberations. Last week, Trump interviewed former Fed governor Kevin Warsh, whom he identified as a leading candidate alongside Kevin Hassett, the director of the National Economic Council.
Christopher Waller was originally appointed to the Federal Reserve's board by Trump himself, with Senate confirmation coming at the tail end of Trump's first term in 2020. Since then, he has emerged as a prominent voice within the central bank advocating for interest rate reductions this year.
The Fed has already implemented quarter-point rate cuts at its last three policy meetings. Waller notably dissented in July, pushing for a cut during the meeting where the central bank ultimately decided to hold rates steady. His consistent intellectual arguments for easing monetary policy have found favour, with several of his points being adopted by current Chair Jerome Powell.
Waller's Strengths and Political Hurdles
In a Wall Street Journal survey of economists conducted in October, Waller ranked as the top choice among the potential candidates being considered. His clear, data-driven framework for rate cuts is viewed positively on Wall Street, and he is seen as a figure who could potentially bridge internal divisions at the Fed.
However, Waller is considered a significant underdog in the race, primarily due to his lack of a close personal relationship with President Trump—an advantage both Warsh and Hassett are believed to enjoy. Furthermore, some individuals in Trump's circle reportedly harbour resentment towards Waller for his vote in favour of a half-point rate cut in September 2024, prior to Trump's election. They viewed this move as an act of disloyalty.
Trump's lingering dissatisfaction over his 2017 decision to appoint Jerome Powell as Fed chair is a driving force behind the current meticulous search. In a recent interview, Trump stated he intends to be more careful this time, blaming a "bad recommendation" from his then-Treasury Secretary, Steven Mnuchin.
The Interview Process and Timeline
Treasury Secretary Scott Bessent provided insights into the timeline and Trump's approach. He indicated that the President is likely to announce his final decision in early January, with one or two more candidate interviews scheduled for this week and the next.
"It's at the president's pace," Bessent stated in a Fox Business Network interview. "He has been very, very deliberate." Bessent also shed light on Trump's interviewing style, noting the president directly questions candidates on their views regarding Fed policy, the institution's structure, and the economic outlook.
Recounting one interview, Bessent said, "the president did—as only he can do—he really came to first principles with one of the candidates," questioning why the Fed employs so many Ph.D. economists. "There wasn't a good answer," Bessent added.
In defending the front-runners, Bessent described both Warsh and Hassett as "very, very qualified." He specifically addressed criticism that Hassett might be too close to Trump to maintain independence, pointing to precedents of other Fed chairs who had prior White House experience. "Kevin Hassett is an eminently qualified Ph.D. economist with a great background," Bessent affirmed.
As the selection process unfolds, Waller is scheduled to speak on the economic outlook in New York on Wednesday morning. The White House has not yet responded to requests for comment on the upcoming interview.
