Federal Reserve Governor Christopher Waller told CNBC on Wednesday that he would “absolutely” stress the importance of central bank independence to President Donald Trump.
Waller is one of five finalists to potentially replace Jerome Powell when his term as Federal Reserve chairman ends in May. He is scheduled to have an interview with Trump later Wednesday.
Asked by CNBC’s Steve Liesman whether he would emphasize the Fed’s independence during his interview with the president, Waller said, “Absolutely.”
“I spent 20 years of my life working on central bank independence and why it matters,” he said at the Yale CEO Summit. “I have a long paper trail on this.”
Trump regularly criticizes the Fed’s decisions and accuses the central bank of moving too slowly to cut interest rates. The President has been a harsh critic of Powell and has publicly contemplated firing him before his term ends.
That has raised fears among some investors that Trump will try to install a strong ally as Fed chair after Powell leaves the central bank. But Waller said Trump has already made his views clear about Fed decisions on Truth Social, leaving no confusion about what the president’s stance is on monetary policy.
Waller said the biweekly breakfast between the Fed chair and the Treasury secretary is an appropriate venue for communication between the White House and the central bank, rather than a one-on-one meeting with the president.
Waller told CNBC that he still views rates as 50 to 100 basis points above the neutral rate, which is not stimulative or restrictive.
“We’ve still got some room to get things down,” Waller said.
National Economic Council Director Kevin Hassett is seen as the frontrunner to succeed Powell, although some high-level people close to Trump have pushed back on his candidacy. Former Fed Governor Kevin Wersh is also on the shortlist.
“I think you have Kevin and Kevin. They’re both — I think both Kevins are great,” Trump told The Wall Street Journal last week.
