Federal Reserve Governor Christopher Waller is gaining traction as the leading candidate to replace Jerome Powell as Fed chair under a potential second Trump administration, according to individuals familiar with the ongoing discussions. The Trump team reportedly favors Waller’s approach to monetary policy, highlighting his emphasis on forward-looking analysis and his institutional understanding of the Federal Reserve system.
Though Waller has not yet met with former President Trump personally, he has held discussions with members of Trump’s economic circle. His recent dissent from the Federal Open Market Committee’s decision to hold interest rates steady has further elevated his profile. Waller, along with fellow Trump appointee Michelle Bowman, supported a rate cut in light of softening labor market data—a move that aligned with Trump’s long-standing desire for looser monetary policy.
Waller’s background adds weight to his candidacy. Before joining the Fed board in 2020, he was executive vice president and director of research at the St. Louis Fed. His nomination was narrowly confirmed by the Senate with a 48-47 vote. Since then, he has become a vocal figure within the central bank, notably clashing with former Treasury Secretary Larry Summers in 2022 over inflation forecasts. Waller’s stance—that the Fed could rein in post-pandemic inflation without triggering a sharp rise in unemployment—ultimately proved accurate, strengthening his reputation among economic conservatives.
Trump’s shortlist includes former Fed governor Kevin Warsh and current National Economic Council director Kevin Hassett. Both men have also reportedly impressed Trump and his advisers, though Waller is viewed as the front-runner at this stage. Trump has confirmed that Treasury Secretary Scott Bessent, Vice President JD Vance, and Commerce Secretary Howard Lutnick are leading the search process.
The Trump team is also preparing to fill a vacant Fed board seat following the early departure of Governor Adriana Kugler. Trump has stated that this position will be temporarily filled, with a longer-term appointment expected in early 2026. That nominee is likely to favor lower interest rates—mirroring Trump’s preference for a more accommodative Fed.
Waller’s policy stance represents a clear contrast to Powell’s patient approach to rate changes. While Powell has pointed to a still-solid labor market and the need to assess the economic impact of Trump’s proposed tariffs, Waller has pushed for preemptive rate cuts, citing signs of cooling job growth. That divide has created friction between Powell and the Trump administration, with the former president repeatedly criticizing Powell for not acting aggressively enough.
Despite speculation, Waller has publicly maintained that he has not yet been approached by Trump. Speaking in July, he said, “If the president contacted me and said, ‘I want you to serve,’ I would do it,” but confirmed no such outreach had occurred.
Waller has also made clear his support for the Fed’s independence, calling it essential for economic stability. His willingness to accept criticism—whether from markets, politicians, or the public—adds to his appeal as a pragmatic and disciplined candidate for the role.
