Waller's Promise: Defending the Fed's Independence

Federal Reserve Governor Christopher Waller, considered a top contender to succeed Jerome Powell as Fed Chair, affirmed his commitment to defending the central bank's independence from political influence. Waller emphasized the importance of maintaining limited interactions with the president while ensuring smooth communication through established channels.

Federal Reserve Governor Christopher Waller, a potential successor to Jerome Powell as Fed Chair, asserted his dedication to safeguarding the central bank's independence amid political pressures. Waller reiterated the importance of preserving the Fed's autonomy, especially if challenged by presidential authority.

Speaking at the Yale School of Management CEO Summit, Waller highlighted proper communication lines between the Fed and the presidential administration. He mentioned routine interactions, such as bi-weekly breakfasts with the Treasury Secretary, as effective means of conveying the administration's economic needs without compromising the Fed's operations.

Despite potential political influences, Waller remains focused on data-driven policy, advocating for lower interest rates amidst decreasing inflation risks and job growth concerns. Corporate leaders back him as a feasible candidate for Powell's role, though uncertainties linger regarding the president's selection, balancing Waller alongside Kevin Hassett and Kevin Warsh.

(With inputs from agencies.)