Federal Reserve Governor Christopher Waller, who was appointed by President Trump during his first term, has reportedly emerged as the top contender to succeed embattled Fed Chair Jerome Powell. 

Waller impressed members of Trump’s team during a recent meeting for his in-depth knowledge of the central bank’s inner workings, though he has yet to meet with the president, Bloomberg News reported on Thursday.

Trump has repeatedly lambasted Powell for being too slow to cut interest rates, and while he has backed off threats to try to oust the Fed Chair before his term ends on May 15, he has accelerated the search for a replacement.

Treasury Secretary Scott Bessent reiterated that Powell will not be fired during an appearance on MSNBC’s “Morning Joe” earlier in the day.

“President Trump has a great reverence for the institution of the Federal Reserve,” Bessent told the left-leaning outlet’s anchors Joe Scarborough and his wife, Mika Brzezinski.

“And as I said, he likes to work the referees — and that’s his right, just as Sen. [Elizabeth] Warren does the same thing.” 

Waller was one of two Fed governors to vote for a rate cut when policymakers met last month, dissenting along with fellow Trump appointee Fed Vice Chair Michelle Bowman when the majority decided to leave short-term borrowing costs unchanged.

Two other people are also being considered for the job are Kevin Warsh, a former Fed governor, and Kevin Hassett, who currently advises Trump on economic policy. 

“President Trump will continue to nominate the most competent and experienced individuals to deliver on his pledge to Make America Wealthy Again,” White House spokesperson Kush Desai said. “Unless it comes from President Trump himself, however, any discussion about personnel decisions should be regarded as pure speculation.”

A Fed spokesperson had no comment.

Trump’s pick will be closely scrutinized for a perceived ability to carry out monetary policy without ceding to political pressure, a quality that economists say is the bedrock of any central bank’s inflation-fighting capabilities and what underpins the financial stability of the US economy.

Waller, a PhD economist whose first speech after becoming Fed governor was about Fed independence, was appointed by Trump in 2020.

While Trump has called for lower rates in order to reduce the cost of government borrowing, Waller has built his case for lower rates on the argument that tariffs won’t boost inflation and that a slowing labor market needs the support of easier policy.

He has rejected the idea that rate-setting should have anything to do with making financing cheaper for the US Treasury.

Trump has demanded aggressive cuts to boost the economy, while Powell has resisted, citing inflation risks and the effects of the administration’s tariffs.  

Last month, the two men disagreed in front of news reporters over the president’s criticism of the Fed’s $2.5 billion headquarters renovation, which he blasted as wasteful.  

Powell has not said if he would break with tradition and stay on as Fed governor after his chair term ends, though analysts speculate that if he felt the Fed’s independence was under threat he would do so to deny Trump the chance to fill another open Fed seat.

Nonetheless, the upcoming resignation of Fed Governor Adriana Kugler on Friday gives Trump an earlier chance to influence the next Fed vote when the policymakers meet in September.  

Trump on Wednesday said Warsh, Hassett and an unnamed third person are candidates to fill the seat vacated by Kugler, whose unexpired term runs through January.

With wires