The race to replace Federal Reserve Chair Jerome Powell is heating up, with President Donald Trump expanding his shortlist to include current Fed Governor Christopher Waller. The move highlights Trump’s main objective: appointing a Fed Chair who supports deep interest rate cuts to boost economic growth. With Powell’s term ending in May next year, the decision could come quickly, possibly as early as January.
Trump is already in discussions with former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett. Waller’s entry into the race suggests the final choice is still open, with policy alignment playing a central role.
Waller has gained traction for his consistently dovish stance on monetary policy. He has been one of the strongest voices inside the Federal Reserve, pushing for rate cuts, and earlier this year dissented when the Fed decided to keep rates unchanged. Under Powell, the Fed has already delivered three consecutive quarter-point cuts, bringing rates to the 3.50%–3.75% range.
Trump has repeatedly argued that interest rates should be closer to 1% or even lower. Waller’s openness to further easing places him closer to Trump’s policy goals than many other candidates. His clear and structured policy views have also earned him support from parts of Wall Street.
Waller has also stood out for his relatively open approach to digital assets. He has pushed back against skepticism around decentralized finance, arguing that regulators should adapt to innovation rather than block it. At a Federal Reserve payments conference last year, Waller described stablecoins as “a new form of private money” that can exist alongside traditional payment systems.
These comments have drawn praise from crypto industry leaders. Custodia Bank CEO Caitlin Long said Waller could help resolve long-standing issues such as access to Fed master accounts for crypto firms. She called the timing of his consideration “perfect” and said he deserves serious attention.
Despite his policy stance, Waller remains an underdog. According to The Wall Street Journal, he lacks the close personal relationship with Trump that Hassett and Warsh have. Some Trump allies have also criticized Waller for supporting only a half-point rate cut in September 2024, arguing it did not go far enough.
Prediction platform Polymarket currently gives Waller a 15% chance of becoming Fed Chair. Hassett leads with 52%, followed by Warsh at 29%.
Treasury Secretary Scott Bessent has confirmed that Trump is actively interviewing candidates and is expected to announce his choice in early January. While Warsh remains the perceived frontrunner, Waller’s inclusion signals Trump’s willingness to prioritize policy views over personal ties.
Some investors see the potential leadership change as market-positive. BitMine chairman Tom Lee believes a new Fed Chair could lead to a more dovish policy shift, possibly supporting a broader market recovery heading into 2026. For now, Waller’s candidacy underscores how the Fed Chair race is being shaped by monetary policy views as much as political dynamics.
Christopher Waller is a current Federal Reserve Governor known for supporting interest rate cuts, aligning closely with President Trump’s push for easier monetary policy.
Jerome Powell is the current Federal Reserve Chair, leading U.S. monetary policy decisions on interest rates, inflation control, and financial stability.
The Fed Chair leads the central bank, guides interest rate policy, oversees financial stability, and represents the Fed to markets, Congress, and the public.
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