Fed Governor Waller's Fed Chair Candidacy & November 24 Market Reaction

Federal Reserve Governor Christopher Waller confirmed a recent meeting with Treasury Secretary Scott Bessent amid growing speculation he is a top candidate to replace Jerome Powell as Fed Chair when Powell’s term expires in May 2026. Waller, a Trump appointee, has publicly supported a December interest rate cut, aligning with the administration’s demands for looser monetary policy. On November 24, 2025, U.S. stock indices reacted positively to the news, with the S&P 500 (+0.75%), NASDAQ Composite (+1.12%), and Dow Jones Industrial Average (+0.34%) all posting gains.

1. Waller is among five candidates on President Trump’s shortlist for Fed Chair [3].
2. Jerome Powell’s term as Fed Chair expires on May 15, 2026 [2].
3. Waller met with Treasury Secretary Scott Bessent 10 days prior to the article to discuss economic outlook [1].
4. Waller publicly supports a December interest rate cut, citing weak labor market conditions [4,5].
5. U.S. indices rose on November 24: S&P 500 (+0.75%), NASDAQ (+1.12%), DJI (+0.34%) [0].

Waller’s emergence as a leading Fed Chair candidate signals a potential shift in U.S. monetary policy. As a Trump appointee (confirmed in 2020), his dovish stance (supporting rate cuts) aligns with the administration’s priority to stimulate economic growth [3]. His meeting with Bessent—described as “straight about economics”—comes as the Treasury Department leads the Fed Chair selection process [1].

The November 24 market rally reflects investor optimism about looser monetary policy under a Waller-led Fed. Tech stocks (represented by the NASDAQ) outperformed, as lower interest rates reduce borrowing costs and boost valuations of growth-oriented companies [0]. Waller’s dismissal of tariff effects as temporary further supports his dovish credentials, as he has argued that trade-related price increases will not drive persistent inflation [1].

Notably, Waller is not the only candidate: Trump’s shortlist includes Fed Governor Michelle Bowman, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and BlackRock’s Rick Rieder [4]. However, Waller’s current role as a Fed Governor and his explicit alignment with Trump’s policy preferences make him a front-runner.

• Short-term
  : Positive reaction to dovish policy expectations, with tech stocks leading gains (NASDAQ +1.12%) [0].
• Long-term
  : If Waller is appointed, sustained rate cuts could boost equity markets but may also lead to inflationary pressures (Waller’s downplaying of tariff effects raises concerns about inflation control) [1].

• Monetary Policy
  : A Waller-led Fed would likely prioritize rate cuts over inflation control, reversing Powell’s more balanced approach [2,5].
• Economic Growth
  : Looser policy could stimulate consumer spending and investment but risks eroding the Fed’s inflation-fighting credibility [1].

• Central Bank Independence
  : Trump’s selection of a Fed Chair candidate aligned with his policy preferences underscores potential political influence on the traditionally independent central bank [3].

• Powell’s Term
  : Jerome Powell was reappointed by President Biden in 2022, but his four-year term as Chair ends in May 2026 [2].
• Waller’s Background
  : He has served as Fed Governor since December 2020 (term ends January 2030) and previously held roles at the Federal Reserve Bank of St. Louis [3].
• Rate Cut Rationale
  : Waller cites weak labor market conditions (near “stall speed”) and anchored inflation expectations as justification for a December cut [5].

1. Nomination Timeline
   : When will President Trump formally announce his Fed Chair nominee?
2. Candidate Comparison
   : How do other shortlisted candidates’ policy stances compare to Waller’s dovish position?
3. Inflation Risks
   : What data supports Waller’s claim that tariff effects are temporary, and how might this impact long-term inflation?
4. Interview Process
   : Was Waller’s meeting with Bessent part of the formal Fed Chair interview process, or just an economic discussion?