President Trump is set to conduct an interview with Christopher Waller for the next Fed Chair. This happens even though he has already shown interest in two other candidates, Kevin Hassett and Kevin Warsh, for the job.
Fed Chair Shortlist Expands with Waller Addition
The Wall Street Journal reported that the president will interview Federal Reserve Governor Christopher Waller later today. According to sources, the conversations are fluid as the president seeks to identify the best person for his “lower rate” campaign.
Trump has already held meetings with former Fed member Kevin Warsh and National Economic Council Director Kevin Hassett. Both of whom Trump has termed as one of his top candidates for the position at the head of the Fed.
Waller has also supported lowering interest rates this year. The central bank has cut rates by a quarter point during its last three meetings. Waller was the only person who dissented when the Fed decided to leave rates unchanged earlier this year.
Apart from monetary policies, it is also notable that Waller has recently come into focus for being rather accommodative towards the world of digital currencies. He has appreciated stablecoins as well as decentralized finance.
At the Federal Reserve payments conference last October, Waller said that the Fed should stop being skeptical about DeFi. He described stablecoins as new types of money that can work alongside traditional payment methods.
Despite this, Waller is still seen as unlikely to become the Fed chair. He is the only candidate among the three who does not have a personal connection to Donald Trump. Moreover, some advisers who are close to the President are not happy with Waller’s decision to recommend only a half percentage point interest rate cut in September.
Trump’s Pick Faces Questions on Commitment to Lower Rates
Trump is very clear about his expectations from his next Fed Chair. He has been strongly criticizing Powell for not cutting rates deeply enough. This comes despite the benchmark interest rate already set to a range of 3.50%-3.75%. He thinks interest rates should be around 1% or lower.
Treasury Secretary Scott Bessent explained how the President has been interviewing candidates for the position. Bessent said that Trump is asking them about their views on Fed policy and structure. He said that a decision may be taken by January.
“It’s on the president’s cadence,” said Bessent in an interview. “He has been very, very deliberate.”
Meanwhile, Former Fed Governor Kevin Warsh has emerged as the most likely successor to Powell. He has an association with the Fed in the past, plus he is well-connected with Trump.
Source: https://coingape.com/fed-chair-drama-heats-up-as-trump-eyes-christopher-waller-amid-lower-rate-ambitions/
