Fed chair candidate Waller to stress importance of Fed independence to Trump

Federal Reserve Governor Christopher Waller told CNBC on Wednesday that he would “absolutely” emphasize the importance of central bank independence to President Donald Trump.

Waller is one of five finalists to potentially replace Jerome Powell when the Fed chair’s term ends in May. He is scheduled to interview Trump later Wednesday.

“Absolutely,” Waller said when asked by CNBC’s Steve Liesman if he would emphasize the Fed’s independence in an interview with the president.

“I’ve 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 weighs in on Fed decisions, accusing the central bank of moving too slowly to lower interest rates. The president has harshly criticized Powell and has publicly spoken out about removing him before his term ends.

That has raised fears among some investors that Trump will try to install a pliant ally as Fed chairman after Powell leaves the central bank. But Waller said Trump had already made his views on Fed decisions clear on Truth Social, leaving no confusion about where the president stands on monetary policy.

Waller said the biweekly breakfast between the Fed chairman and the Treasury Secretary is an appropriate setting for communication between the White House and the central bank, rather than face-to-face meetings with the president.

Waller told CNBC that he still thinks interest rates are 50 to 100 basis points above the neutral rate, which is neither stimulatory nor restrictive.

“We still have room to shake things up,” Waller said.

National Economic Council Director Kevin Hassett is widely considered a candidate to replace Powell, but some senior figures close to Trump have turned down his nomination. Former Fed Chairman Kevin Warsh is also on the shortlist.

“I think you’ve got Kevin and Kevin. Both – I think two Kevins are great,” Trump told The Wall Street Journal last week.