The competition for the Federal Reserve Chairmanship has suddenly intensified. Rumors from the Trump team indicate that on December 17th, he will have an interview with current Federal Reserve Board member Waller—this move completely breaks the previous "either-or" expectation.

Previously, everyone thought it was a contest between Kevin Warsh and Kevin Hassett, but Waller suddenly emerged. Why has this board member become a heavyweight candidate? The key lies in his policy stance.

Since the beginning of this year, Waller has been the most vocal advocate within the Fed for cutting interest rates. As early as the July FOMC meeting, only he voted against the majority, advocating for an immediate rate cut. This is not just casual talk; his logic for rate cuts is very clear, and even current Chair Powell later adopted many of his views in speeches. Wall Street and economists also have a good opinion of him, believing he could bridge internal policy divisions within the Fed.

Interestingly, this interview is scheduled before Waller delivers an important speech on economic outlook. In other words, his public remarks will directly influence how the market perceives this interview.

In simple terms, the choice of the next Federal Reserve Chair essentially determines the direction of U.S. monetary policy. Will it lean towards a dovish, moderate approach, or will there be other considerations? This directly relates to the interest rate environment after 2026. For asset allocators, this choice will impact liquidity conditions and, consequently, the performance of various assets. If Waller takes the position, the market’s expectations for rate cuts could be significantly adjusted.