Federal Reserve Governor Christopher Waller, who is among the leading candidates to succeed Fed Chair Jerome Powell next year, said he would firmly defend the central bank’s independence if it came under pressure. Waller is scheduled to be interviewed by President Donald Trump this week as the selection process moves closer to a final decision.
Since returning to the White House in January, Trump has repeatedly called for lower interest rates. In a recent interview with the Wall Street Journal, he said the next Fed chair should consult with him on monetary policy decisions, a stance that has reignited debate over the central bank’s autonomy.
Waller outlines limits of White House–Fed communication
Speaking at an event in New York, Waller said existing communication channels between the administration and the Federal Reserve are sufficient. He pointed to the long-established practice of regular meetings between the Fed chair and the Treasury secretary as an appropriate way for the White House to share its economic priorities.
Waller noted that President Trump has never been subtle about his views on monetary policy, frequently expressing them publicly. As a result, he said there is little ambiguity about the administration’s stance.
During a discussion at the Yale School of Management CEO Summit, Waller emphasized that coordination between the Fed and the White House is appropriate during extraordinary periods, such as the joint Treasury–Fed response to the COVID-19 crisis.
However, in normal economic conditions, he said routine meetings between the Fed chair and Treasury leadership provide a well-understood and effective channel for information exchange. He added that this structure protects the Fed’s independence while allowing policymakers to stay informed about broader government priorities.
When asked directly whether he would defend the Federal Reserve’s independence if challenged by a president, Waller responded unequivocally that he would “absolutely” do so.
Race to replace Powell intensifies
Waller is the third candidate to be interviewed by Trump in recent days as the administration narrows its choice to replace Powell, whose term ends in May. Any nominee will require confirmation by the U.S. Senate.
Media reports have suggested that White House economic adviser Kevin Hassett is a leading contender, while former Fed Governor Kevin Warsh has also met with the president. Trump has said he expects to announce his decision in the near future.
Amid concerns that Hassett’s close ties to the president could raise questions about independence, Treasury Secretary Scott Bessent dismissed those criticisms as unfounded.
Waller’s background and policy stance
Waller joined the Federal Reserve’s Board of Governors in 2020 after being nominated by Trump during his first term. Before that, he served as director of research at the St. Louis Federal Reserve.
Trump has frequently criticized the Fed and Powell for not cutting interest rates more aggressively. Many economists argue that political pressure on monetary policy increases inflation risks and undermines long-term economic stability.
The Fed’s legal independence has become a central issue in the succession process, particularly after Trump appointed a sitting White House economic adviser to a Fed governor role, an unconventional move that drew scrutiny from policy experts.
Waller has emerged as one of the strongest advocates for interest rate cuts in recent months, citing a softening labor market and easing inflation pressures. While some observers speculated that his dovish shift was tied to leadership ambitions, Waller has consistently said his policy views are driven by economic data rather than politics.
On Wednesday, he reiterated that inflation risks are declining and job growth has weakened, leaving room for further rate cuts.
A poll conducted at the Yale event showed strong support among corporate executives for Waller as Powell’s successor. However, only about one-third of respondents believed Trump would ultimately select him, roughly matching expectations for Hassett or Warsh.
