Waller Shines in Fed Chair Interview with Trump, BlackRock’s Rieder to Make Final Pitch
The selection process for the next Fed Chair is heating up, with President Donald Trump holding interviews with top candidates. According to people familiar with the matter, Fed Governor Christopher Waller had a “strong interview” with Trump, where they discussed the labour market and job creation in detail.
Meanwhile, BlackRock’s Rick Rieder is set to make a final pitch for the Fed Chair role. With several candidates in the list, including National Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh, the decision on who will lead the Federal Reserve is being closely watched.
Trump’s Pick: Who Will Be the Next Fed Chair?
As per a CNBC report, US President Donald Trump is holding interviews to appoint the next Fed Chair, succeeding Jerome Powell. Governor Christopher Waller had a positive interview, sparking speculation about his potential appointment as the next Fed Chair.
Notably, Trump praised Waller, saying he’s “great” and has a deep understanding of economic issues. They discussed crucial economic topics, including labor market and monetary policy. Waller has been a strong advocate of cutting interest rates to support the economy. Trump stated,
“I think he’s great. I mean, he’s been a man who has been there a long time, somebody that I was very involved with.”
The interview comes as the President narrows down his list of candidates to replace Jerome Powell, with other contenders including Kevin Hassett and Kevin Warsh. The meeting with Governor Waller took place at the White House residence, wrapping up just before Trump’s economic address on Wednesday. The discussion was attended by key officials, including Treasury Secretary Scott Bessent, Chief of Staff Susie Wiles, and Deputy Chief of Staff Dan Scavino.
BlackRock’s Rick Rieder in the Running for Fed Chair
As reported by CNBC, Trump is set to interview BlackRock Chief Investment Officer of Global Fixed Income Rick Rieder as part of the process of replacing current Chair Powell. Rieder is among the top contenders for the position and is the last to be interviewed.
The report also revealed the other top contenders who have already been interviewed. They are Kevin Hassett and Kevin Warsh. Also, the report noted that Michelle Bowman has been removed from the list.
Trump Prefers Fed Chair Prioritizing Lower Interest Rates
A recent Reuters article outlined Trump’s vision of the next Fed Chair. Trump stated that the new Chair will be someone who strongly advocates for lower interest rates. By this move, he believes that the mortgage rates and inflation pressures could be diminished. His words read,
“I will soon announce our next chairman of the Federal Reserve, someone who believes in lower interest rates by a lot, and mortgage payments will be coming down even further.”
However, Donald Trump’s push for lower mortgage rates faces challenges as the Fed’s influence on long-term borrowing costs is limited. The 10-year Treasury noted yield, which significantly impacts mortgage rates, is driven by investor expectations for economic growth and inflation. As a result, mortgage rates have remained relatively stable between 6.3% and 6.4% since Labor Day, showing little sign of decline. Even the recent interest cuts had little impact on mortgage rates.
