Fed Governor Chris Waller Leaves Trump Meeting Knowing Chair Race Remains Wide Open
Another closed-door meeting, another layer of political fog over the Federal Reserve's future.
The Post-Meeting Reality Check
Chris Waller, a sitting Federal Reserve governor, walked out of a meeting with former President Donald Trump with one clear takeaway: the race for the next Fed chair is still anyone's game. No anointments, no clear frontrunner—just the familiar Washington dance of power and perception.
These high-stakes conversations rarely yield public commitments. Instead, they're about positioning, influence, and testing the political winds that will ultimately decide who guides the world's most powerful central bank. Waller's exit confirms the script: the decision is being postponed, studied, and politicized in classic fashion.
Why the Uncertainty Matters Beyond the Beltway
For markets, this prolonged uncertainty isn't just bureaucratic noise. The Fed chair wields unparalleled influence over interest rates, monetary policy, and financial stability. Every day the seat remains in limbo is another day markets price in 'what-if' scenarios, from dovish pivots to hawkish crackdowns.
It's the ultimate case of institutional suspense, where the only thing Wall Street hates more than bad news is no news at all. The waiting game injects volatility into everything from treasury yields to equity futures—a costly hobby for an industry that pretends to price in all known variables.
The Bottom Line: Power, Not Policy
Waller's meeting underscores a timeless truth: in Washington, personnel is policy. The battle for the Fed chairmanship isn't just about economics PhDs and inflation models; it's a raw contest for control over the financial system's steering wheel.
So while analysts obsess over dot plots and CPI prints, the real action happens in rooms like these—where handshakes and hedged statements shape the next decade of money. And as usual, the markets will be the last to know, left to decipher whispers and leaks like medieval soothsayers reading entrails. After all, what's high finance without a little high-stakes gossip?
Trump signals his wider search for a chair
Officials stressed that the conversation with Chris proved wrong any claim that Trump wanted someone who WOULD “bow” to him on interest rates. They said the president was looking across many economic issues.
But Trump has also been blunt about wanting a chair who talks to him. Last week, he told The Wall Street Journal the Fed chair “should consult” with him. He added, “I don’t think he should do exactly what we say. But certainly we’re—I’m a smart voice and should be listened to.” Classic Trump line. Direct. Confident. And yes, Chris heard all of that too.
A day later in the Oval Office, Trump gave Chris warm public remarks when asked by a reporter. He said, “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 nominated him in 2019. Still, the praise did not change the simple fact that Chris was not emerging as the leading pick. Officials kept repeating that the interviews were part of a “highly organized process,” which usually means the decision is nowhere NEAR done.
Trump’s speech Wednesday night made the direction even clearer. He 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.” That line alone showed what he wants: someone aggressive on cuts.
Chris lays out his rate views and job worries
Hours before the Oval Office meeting, Chris spoke at the Yale CEO Summit in New York. He said he believed interest rates could fall by 50 to 100 basis points because he expects inflation to drop and is worried about weak hiring.
The Fed governor also reminded viewers that he dissented in July when the Fed held rates steady. That call looked sharp later, with the Fed cutting 75 basis points starting in September.
Officials did not share details of his private conversation with Trump, but the context made the topic clear. The November jobs report showed unemployment rising to 4.6%, up from 4.4% in September. Payroll growth almost stalled. Jobs have become a major political headache.
Trump pushed the point again in his economic speech, saying, “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 added 687,000 jobs while the government cut 188,000 roles.
And then there was the moment that made everyone in the room laugh. Someone told Trump that Chris can deadlift 350 pounds. The president was said to be “seriously impressed.” Not enough to hand him the top job, but definitely enough to raise eyebrows.
Chris left knowing the truth. The search continues. And he is no longer expecting his phone to ring.
Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
