Fed Contender Waller Backs Rate Cuts Without Bowing to Trump

When Federal Reserve officials met last month, investors were convinced the first interest-rate cut of 2025 was coming. But what, many wondered, would Governor Christopher Waller do?

To outsiders, Waller was in a difficult spot. A close ally of President Donald Trump had just joined the central bank and was all but certain to vote for the kind of drastic rate cut the president wants. Waller — who’s on the administration’s shortlist to take over as Fed chair — might have felt pressure to boost his prospects by doing the same.

He didn’t go for it. While Trump’s new appointee, ...