S&P 500 eases slightly from fresh record high after stronger economic growth
Investing.com -- Federal Reserve Governor Christopher Waller has emerged as a leading candidate to replace Jerome Powell as the central bank’s chair, according to a report from Bloomberg, citing sources familiar with the matter.
President Donald Trump’s advisers are reportedly impressed with Waller’s approach to policy based on forecasting rather than current data, as well as his comprehensive knowledge of the Federal Reserve system.
Waller has already met with the president’s team regarding the position, though he has not yet had a meeting with Trump himself, the sources said.
During the July 2025 FOMC decision to maintain the federal funds rate at 4-1/4 to 4-1/2 percent, Waller, along with Michelle Bowman, dissented against the rest of the Committee by seeking a 1/4 percentage point rate cut.
Despite no rate cut in July, following the weaker-than-expected July jobs number last Friday, markets are now increasingly betting that the Fed will cut in September. Traders are placing a nearly 90% chance of a 1/4 percentage point rate cut at the September 17th FOMC meeting.
Other candidates still under consideration include former Fed official Kevin Warsh and current National Economic Council director Kevin Hassett. The position will become available when Powell’s term as chair ends in May 2026.
Trump has relentlessly attacked Powell for his failure to get rates down, nicknaming him "Too Late." The president has argued that inflation is low, and the Fed’s European counterparts have lowered rates multiple times.
The probability that Waller will be named as the next Fed Chair surged 17% Thursday on Polymarket to 36%. Hassett’s chances fell 8% to 17% and Warsh’s chances fell 9% to 10%.
Frank DeMatteo contributed to this report