Fed's Waller: Would agree to Fed chair role if president asked

Fed's Waller: Would agree to Fed chair role if president asked

Federal Reserve Governor Christopher Waller, a vocal proponent of interest rate cuts, has indicated that he would accept the role of Federal Reserve Chair if President Donald Trump were to ask. Waller's comments come as the Fed prepares for its July 29-30 meeting, where it is expected to keep its benchmark rate steady in the 4.25%-4.50% range, despite rising inflation and calls from the White House for lower borrowing costs [1].

Waller, who has been mentioned as a potential replacement for current Fed Chair Jerome Powell, reiterated his call for a rate cut at the upcoming meeting. He argued that the economy is showing signs of weakening, with consumer spending slowing and job gains cooling. Waller believes that reducing borrowing costs would help shore up spending and growth before the job market weakens further [2].

Waller's stance contrasts with that of Powell, who has been reluctant to cut rates until it is clear how much inflation is in train, how long it persists, and whether the economy begins to slow enough to ease the pressure on prices [1]. Powell's cautious approach has drawn criticism from the White House, with President Trump threatening to fire Powell this year but later backing off with a nod to the market disruption that would likely follow [1].

Waller's comments also come as other Fed officials have expressed support for rate cuts. Atlanta Fed President Raphael Bostic, for instance, has noted that the June Consumer Price Index showed inflation rising across an array of largely imported goods, suggesting that businesses may have begun passing tariffs along to consumers [1]. Fed Governor Adriana Kugler has also emphasized the need to keep rates steady to hold inflation and inflationary psychology in check [1].

While Waller's call for a rate cut has gained traction, it remains to be seen whether the Fed will act on it. The central bank is expected to hold its benchmark rate steady at its July meeting, with investors anticipating a quarter-percentage-point reduction in September. However, the odds of a rate cut in July have slipped to nearly 50-50 after the June Consumer Price Index showed inflation rising to 2.7% [1].

References:
[1] https://www.newsmax.com/finance/streettalk/federal-reserve-rate-cute-inflation/2025/07/18/id/1219184/
[2] https://www.usnews.com/news/business/articles/2025-07-17/federal-reserves-waller-says-central-bank-should-cut-rates-at-next-meeting