After Jerome Powell stepped down as FED chairman in May, Kevin Warsh and Kevin Hassett came to the forefront, but a surprise name emerged at the last minute.
At this point, Christopher Waller, a member of the Federal Reserve, has also emerged as a leading candidate for the FED chairmanship and has made important statements regarding interest rates.
Speaking at the Yale Business School CEO Summit in New York, Waller said the US central bank still has room to lower interest rates.
Waller argued that the Fed’s monetary policy is still in restrictive territory, predicting that inflation is still above target but will fall in the coming months.
Waller emphasized that inflation expectations remain valid, but added that he does not expect a renewed acceleration.
“I believe inflation will fall.”
It’s difficult to say that the weakness in the job market is due to tariffs.
The job market is signaling that the Fed needs to cut interest rates.
I think the Fed is currently 50 or 100 basis points away from the neutral level.”
Christopher Waller is one of five finalists to succeed current Fed Chairman Jerome Powell, whose term ends in May, and is expected to meet with President Donald Trump this week.
At this point, Waller said in an interview with CNBC that she would definitely emphasize the importance of central bank independence in her meeting with Trump.
*This is not investment advice.