Waller had a ‘strong interview’ for Fed chair with Trump

Federal Reserve Governor Christopher Waller had a “strong interview” for the central bank chair position with President Donald Trump in which the two discussed the labor market in depth and how to jump-start job creation, according to senior administration officials.

The interview took place in the president’s residence and concluded shortly before Trump addressed the nation on the economy Wednesday night. Treasury Secretary Scott Bessent, chief of staff Susie Wiles and deputy chief of staff Dan Scavino also attended the interview.

Blackrock’s Rick Rieder will be interviewed at Mar-a-Lago for the Fed chair job the last week of the year, the officials said. Fed Governor Michelle Bowman is no longer a candidate for the job, they also said.

National Economic Council Director Kevin Hassett, the favorite for the job in prediction markets, and former Fed Governor Kevin Warsh have previously been interviewed by Trump.

The officials said the conversation about jobs with Waller showed concern and criticism was misplaced that the president was seeking a candidate based on the criteria that the next Fed chair would bow to the whims of Trump on rates. They said the president’s interest in the interviews with candidates had been broad-based across a series of economic issues.

Last week, Trump told The Wall Street Journal he thought the Fed chair should consult with him on rates. “It doesn’t mean—I don’t think he should do exactly what we say,” the president said. “But certainly we’re—I’m a smart voice and should be listened to.”

In the Oval Office on Thursday, Trump praised Waller in response to a reporter’s question. “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.” Trump interviewed Waller in 2019 and nominated him to be a Fed governor.

Despite the praise of Waller and the positive description of the interview, there was no indication that he was a favorite candidate for the job. It was only clear that the process of interviews continues with the obvious implication that the president had yet to make a decision. The officials said the interviews are following a “highly organized process.”

In his speech Wednesday, Trump said, “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.”

In an interview on Wednesday with CNBC at the Yale CEO Summit in New York, which took place before he met with the president, Waller said he believed rates could decline by 50 to 100 basis points below the current level because he expects inflation to drop and was concerned about the weak job market.

Waller dissented in July when the Fed kept rates on hold, a move that seemed prescient with the Fed then starting cuts in September and taking rates down another two times before year-end.

No details were provided of what the two men discussed about jobs, but the conversation suggests Trump could be more focused on the issue. The recent November jobs report showed a rise in the unemployment rate to 4.6% from 4.4% in September while payroll growth slowed to a crawl.

In his speech Wednesday, Trump said that “there are more people working today than at any time in American history. And 100 percent of all jobs created since I took office have been in the private sector.”

Since January, the private sector has added 687,000 jobs and the government has lost 188,000 as part of sweeping job cuts by the administration.

On a lighter note, the president was said to have been seriously impressed when informed that Waller could dead lift 350 pounds.