Federal Reserve Governor Christopher Waller is reportedly the frontrunner to succeed Jerome Powell as the next Fed Chair. The Trump Team appears to favor Waller due to his proactive approach to economic forecasts, contrasting with Powell’s more cautious wait-and-see strategy.
A Bloomberg report indicates that Waller has gained traction among Donald Trump’s advisers as they seek a replacement for Powell. The team appreciates Waller’s commitment to formulating policy based on future projections rather than solely on current data.
Additionally, Waller’s extensive knowledge of the Federal Reserve system has impressed Trump’s team. While he has met with advisers, he has yet to sit down with the president, a meeting that could influence their decision.
Kevin Warsh, a former Fed Governor, remains a contender for the role, according to Bloomberg. Powell’s term as Fed Chair lasts until May 2026, but the president can announce a successor at any time.
In a recent interview, Trump hinted that he might announce the next Fed Chair “fairly soon.” He mentioned that “Two Kevins” are in the mix for the position, although he did not specify Waller, stating he has other candidates in mind.
Current data from Polymarket suggests a 33.6% likelihood that Trump will name Waller as the next Fed Chair in 2025. There’s a 28% chance that no announcement will be made this year, with Kevin Hassett and Kevin Warsh at 19.2% and 10.5%, respectively.
Waller’s Stance on Monetary Policy
Chris Waller has long supported a Federal Reserve rate cut, a move that could help boost cryptocurrency prices by increasing liquidity in the economy. He was notably one of the two dissenting votes against maintaining steady rates at the July FOMC meeting, alongside Michelle Bowman.
Waller advocates adjusting monetary policy based on forecasts instead of solely on current data. He previously cautioned about potential labor market issues as early as June, a concern that seems warranted given the disappointing July nonfarm payroll figures.
He had urged swift action to avoid a labor market slowdown, differing from Powell and other FOMC members who believed the market was robust enough to hold off on rate cuts.
However, some FOMC members’ perspectives are shifting. Fed President Neel Kashkari recently suggested that it’s time to cut rates, citing a slowing U.S. economy. He indicated that two rate cuts this year could be appropriate.
Similarly, Fed President Mary Daly has remarked that the time for rate cuts is approaching. CME FedWatch data shows a 93.2% probability that the Fed will lower rates at the September FOMC meeting, a move that could positively impact the cryptocurrency market and spark a new upward trend.
