Waller Puts In Bid For Next Fed Chair, Says Powell Should Cut “As Early As July”

With tensions between Trump and Powell running at Israel-Iran levels, moments ago Fed Governor Christopher Waller put in a bid to become the next Fed (shadow) chair, and said the central bank can lower interest rates as soon as next month.

“We could do this as early as July,” Waller said in an interview with Steve Liesman. The next FOMC meeting is July 29-30, so if (next Fed chair) Waller had his way, Powell would be cutting in just over a month. 

Waller said the FOMC should move slowly but start to ease as inflation is now longer a major economic threat. “I think we’re in the position that we could do this and as early as July”, Waller said in an interview with Steve Liesman. “That would be my view, whether the committee would go along with it or no”.

“I think we’ve got room to bring it down, and then we can kind of see what happens with inflation,” he said, adding the central bank could pause cuts if needed. And of course, let’s not forget that the Fed did cut 50bps two months before the election, when inflation was not only much higher than it is today, but when the US economy was just as weak as it is now.

Some more “facts”: the last time US data was this weak the Fed cut 50bps https://t.co/JkpqnlhFm3 pic.twitter.com/7GJOqr93RC

— zerohedge (@zerohedge) June 18, 2025

Waller’s comments followed the decision by Fed policymakers on Wednesday to keep interest rates on hold. where the number of officials who saw rates unchanged in 2025 rose from 4 in March to 7, pointing to an apparent split in the committee.

Officials also continued to signal their expectation for two rate cuts before the end of 2025, according to their median projection.

Some more comments from Waller:

• *WALLER: DON’T WANT TO WAIT FOR CUTS UNTIL JOB MARKET TANKS
• *WALLER: JUST DON’T SEE SECOND-ROUND TARIFF INFLATION EFFECTS
• *WALLER: NOT ALL OF TARIFFS WILL BE PASSED THROUGH TO INFLATION
• *WALLER: MIGHT SEE INFLATION RISE THREE-TENTHS OR HALF PERCENT

Translation: “Mr President, I am happy to step in as shadow Fed chair until the stupid numbskull guy is out.”

Remarkably, Waller isn’t even among the list of candidates considered by Polymarket as next Fed chair.

He should be.