Fed Chair Nominee Waller Favors Interest Rates as Primary Policy Tool

Gate News message, April 21 — Christopher Waller, the Federal Reserve’s chair nominee, stated today that the overall economy is currently near full employment. He expressed a preference for using interest rates as the primary policy tool, noting that rate cuts would benefit more people. Regarding the Fed’s balance sheet, Waller indicated it has been counterproductive to achieving the central bank’s dual mandate of price stability and maximum employment. He emphasized the need for a gradual and cautious approach to reducing the balance sheet. The comments reflect Waller’s policy priorities ahead of potential confirmation as Fed chair, signaling a focus on interest rate adjustments over balance sheet management in addressing economic conditions.