WASHINGTON D.C. (NewsBlock) -
President Trump
praised Federal Reserve Governor Chris
Waller as “great” on Tuesday and said he has narrowed his choice for
Fed chair to three or four candidates, with a decision expected within weeks. The comments come
as markets watch closely for signs of how the White House may influence future
monetary policy, including interest rate decisions that affect borrowing costs,
inflation, and global financial markets.
Trump made the remarks while speaking to
reporters at the White House, declining to name the other candidates still
under consideration. The current Fed chair’s term expires next year, setting
off a closely followed selection process.
“I think Chris
Waller is great,” Trump said. “There are three or four people I’m looking at,
and we’ll be making a decision pretty soon.”
Waller, a
sitting Federal Reserve governor, has drawn attention for his views on
inflation and interest rates, often emphasizing the need to balance price
stability with economic growth. He was appointed to the Fed’s Board of
Governors in 2020.
The Fed chair nomination is among the most
consequential economic appointments a president can make, shaping U.S. monetary
policy and influencing financial markets worldwide. The position requires
Senate confirmation.
Investors have
closely monitored Trump’s comments on the Fed, given his past criticism of
central bank policy and calls for lower interest rates during his previous
term. “The choice of
chair will signal how the administration views inflation risks versus growth,”
said Mark Zandi, chief economist at Moody’s Analytics. “Markets are listening
carefully.”
Trump did not indicate whether he plans to
reappoint the current chair or select a new nominee. The White House declined
to comment further on the timing or criteria for the selection. Waller declined
to comment when asked about Trump’s remarks.
Other potential
candidates mentioned previously by analysts include current and former Fed
officials as well as economists with experience in financial regulation, though
Trump has not publicly confirmed any names.
The Federal Reserve has held interest rates
steady in recent months after an aggressive tightening cycle aimed at curbing
inflation. Any change in leadership could influence how quickly the central
bank moves toward easing policy.
“Personnel
decisions matter,” said Sarah House, senior economist at Wells Fargo. “The
chair sets the tone for debate and consensus inside the Fed.”
What’s Next
Trump said a
final decision is expected within weeks, setting the stage for a formal
nomination and Senate confirmation hearings. Lawmakers are likely to scrutinize
the nominee’s views on inflation, financial stability, and the Fed’s
independence.
Markets are expected to react to any signals about the
administration’s preferred policy direction once a nominee is announced.
Analysts said clarity on the Fed chair choice could influence expectations for
interest rate moves later this year and into 2026.