Christopher Waller Becomes a Leading Candidate for the Federal Reserve Chairman Position, Aligning with Trump’s Rate Cut Stance
He has a forward-looking view on stablecoins, and his appointment will influence monetary and cryptocurrency regulatory policies.
(Background: Fed’s Daly: The timing for rate cuts is approaching; there may be more than two cuts this year (the September probability is nearly 95%))
(Context: Trump calls for an immediate rate cut due to “fake economic data”: New Fed Chairman to be announced within three days, along with a new Labor Statistics Bureau Director)
At the beginning of August, the already tumultuous personnel changes within the Federal Reserve suddenly accelerated—Governor Adriana Kugler unexpectedly resigned, and the Director of the Labor Statistics Bureau was personally dismissed by Trump on the day the non-farm payroll data was released. Just as the market was still grappling with these personnel shocks, the White House made it clear: “A decision on the Federal Reserve Chairman candidate will be made this weekend.” On August 7, informed sources revealed that, while Trump’s advisors were seeking a successor to Powell, Federal Reserve Governor Christopher Waller was gradually becoming a popular candidate for the Fed Chairman position. Trump’s advisors were impressed with Waller due to his willingness to base policies on forecasts rather than current data, as well as his deep understanding of the entire Federal Reserve system.
During a previous FOMC meeting, Waller, along with Governor Michelle Bowman, advocated for an immediate 25 basis point rate cut, marking them as the first two members in 32 years to cast a “no” vote. This stance aligns with Trump’s call for rate cuts, solidifying his position as a “credible monetary easing ally” in the political game between the White House and the Federal Reserve.
Competition for the Leading Candidate for the Federal Reserve Chairman Position
Reports indicate that President Trump has officially initiated the interview process for the next Federal Reserve Chairman, with three core candidates locked in: Kevin Hassett, Kevin Warsh, and the current Federal Reserve Governor Christopher Waller.
Hassett currently serves as the Director of the White House National Economic Council and was a staunch supporter of Trump’s economic policy ideas during his tenure on the White House Council of Economic Advisors. Warsh, a former Federal Reserve Governor, was involved in managing the financial crisis from 2006 to 2011. Although he leans hawkish, he has maintained a close relationship with Trump and has significant influence on Wall Street. Waller is currently the most watched candidate in the market; as a sitting Federal Reserve Governor, he voted in favor of rate cuts during the latest FOMC meeting, aligning closely with Trump’s call for monetary easing.
According to Federal Reserve appointment rules, the Federal Reserve Chairman must be a current Governor. The term of current Chairman Powell will end in May 2026, while the Governor’s term lasts until January 2028—if he chooses to remain a Governor after stepping down, Trump’s options for appointing a new Chairman will be limited. Therefore, the recent resignation of Governor Adriana Kugler is seen as a critical window. Trump