Fed Chair Race: Trump to Interview Christopher Waller as Potential Successor to Jerome Powell

TLDR

• President Trump will interview Federal Reserve Governor Christopher Waller as part of selecting the next Fed Chair.
• Waller advocates for stablecoins and decentralized finance, seeing them as beneficial to the financial ecosystem.
• Waller competes with Kevin Warsh and Kevin Hassett for the role, with Hassett holding the highest odds.
• Waller’s pro-crypto stance makes him a popular choice among crypto supporters.
• Trump criticizes Jerome Powell’s approach to interest rate cuts and is seeking a new Fed Chair to adopt more aggressive policies.

President Donald Trump is set to interview Federal Reserve Governor Christopher Waller for the position of next Fed Chair. According to a report by The Wall Street Journal, the interview is part of Trump’s process of selecting a successor to Jerome Powell, whose term will expire in May next year. Waller, a supporter of crypto, particularly stablecoins and decentralized finance (DeFi), is one of several candidates being considered.

Waller’s Support for Crypto and DeFi

Christopher Waller, who has served on the Federal Reserve’s Board of Governors since his appointment in 2020, is known for his positive stance on cryptocurrency. He has publicly spoken in favour of stablecoins and DeFi, viewing them as a natural evolution in the payment space. During the Fed’s Payments Innovation Conference in October, Waller remarked, “The DeFi industry is not viewed with suspicion or scorn,” signalling an open approach to new financial technologies.

Waller has expressed that stablecoins should coexist with other forms of private money, emphasizing their role as a new payment method. His stance aligns with a growing acceptance within the financial sector of digital assets, although his views still differ from more traditional financial policymakers.

Waller’s pro-crypto outlook makes him a standout candidate as the next Fed Chair, particularly among crypto advocates. While Waller has voiced support for the broader crypto ecosystem, he remains focused on ensuring that these innovations do not disrupt financial stability. He sees the development of digital dollars and decentralized finance as ways to enhance the financial system rather than undermine it.

Contenders for the Fed Chair Position

Christopher Waller is competing for the Fed Chair position with several other candidates, including former Fed Governor Kevin Warsh and current National Economic Council Director Kevin Hassett. Warsh is considered a prominent contender, having already interviewed with Trump last week.

Hassett, another leading candidate, holds the highest odds for the position but has faced internal opposition from Trump’s advisors. While Waller remains a strong candidate, his position as an underdog is noted due to his limited personal connection with Trump compared to other contenders. According to Polymarket data at the time of press, Waller’s chances stand at around 19% compared to Warsh’s 23% and Hassett’s 54%.

Scott Besset takes the lowest percentage with a 2% chance. Despite being viewed as a long shot, Waller is considered capable of navigating internal divisions within the Fed. He has garnered favourable views from Wall Street, particularly for his arguments in support of recent interest rate cuts.

Trump’s Discontent with Jerome Powell’s Leadership

President Trump has been an outspoken critic of current Fed Chair Jerome Powell, particularly regarding his approach to interest rate cuts. Trump has consistently called for more aggressive cuts, aiming for a target benchmark of 1% or lower.

Powell, on the other hand, has overseen a series of moderate rate reductions, with the current target rate at 3.50% to 3.75%. Trump’s preference for deeper cuts has influenced his push to find a new Fed Chair. His frustration with Powell stems from the ongoing debate on how aggressively to reduce rates amid economic uncertainty.

With Powell’s term ending in May 2026, Trump is taking steps to ensure a shift in leadership at the Federal Reserve. The eventual choice for the next Fed Chair could have an impact on economic policy and the broader financial landscape, including potential implications for the crypto market.

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