Trump’s Pick to Replace Fed Chair Jerome Powell Leaked
Waller, who holds a PhD in economics, delivered his first speech as a Fed governor on the importance of central bank independence.
Quick overview
- The Trump administration is considering Federal Reserve Governor Christopher Waller as a potential successor to Jerome Powell as Chair of the Fed.
- Waller has impressed Trump's team in meetings, although he has not yet spoken directly with the former president.
- U.S. stock indexes reacted negatively to the news, reflecting market concerns about potential leadership changes at the Federal Reserve.
- Waller's views on central bank independence and monetary policy may influence his candidacy amid Trump's criticism of Powell's interest rate decisions.
The Trump administration is reportedly considering Federal Reserve Governor Christopher Waller as a leading candidate to succeed Jerome Powell as Chair of the U.S. central bank.
According to Bloomberg News, Waller has already met with members of Trump’s team, who were impressed by him, though he has not yet spoken directly with the former president.
Following the news, major U.S. stock indexes dipped by as much as 0.6%, reflecting market sensitivity to potential leadership changes at the Fed.
“The President will continue to nominate the most capable and experienced individuals to fulfill his promise to Make America Rich Again,” said White House spokesperson Kush Desai. “However, unless it comes directly from President Trump, any discussion of personnel decisions should be considered pure speculation.”
Trump has repeatedly criticized Powell for not cutting interest rates more aggressively. While he backed off from threats to remove him before his term ends on May 15, he has reportedly accelerated the search for a replacement.
Trump’s eventual pick will be scrutinized for their perceived independence—widely considered essential for a central bank’s ability to control inflation and maintain financial stability.
The Future of the Federal Reserve
Powell has not yet indicated whether he will step down entirely from the Fed when his term ends. Analysts speculate he might remain as a governor if he believes the institution’s independence is at risk, thereby denying Trump the chance to fill another seat.
Waller, who holds a PhD in economics, delivered his first speech as a Fed governor on the importance of central bank independence—an attribute that could help ease concerns over political interference. He also supported a rate cut at the July meeting and dissented from the majority alongside Michelle Bowman, Trump’s appointee and current Vice Chair, when they voted to hold rates steady.
While Trump has pushed for lower rates to ease government borrowing costs, Waller has framed his case differently—arguing that tariffs are unlikely to fuel inflation and that a weakening labor market warrants more accommodative policy.
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