00:00This is Fed Governor Chris Waller, and he just decided to play politics instead of economics
00:05when he dissented against holding interest rates steady.
00:08Why?
00:08So that President Trump will pick him to be the next chairman of the Federal Reserve.
00:12But sadly, there's going to be a reputational price to pay, both for Waller and the institution itself.
00:18Now, Waller, as a lot of people know, is my personal favorite among the four candidates for the Fed job.
00:24And the timing of this dissent sure makes it look political.
00:27From an economic point of view, it just isn't clear why it would be so imperative to cut rates right now.
00:33Inflation is still somewhat above target.
00:35GDP data has been quite strong recently.
00:38And the policy stance is already in a range that we may call plausibly neutral.
00:44It's just a shame that President Trump has forced such an honorable public servant to essentially bend the knee here
00:51just to be considered for this important job.
00:54One of the reasons that I loved Waller's candidacy so much is because I think he is the best candidate
01:01to protect the integrity and independence of the Federal Reserve.
01:05He has had a phenomenal track record as a prognosticator since he joined the Fed in 2020.
01:13And all this just goes to show that even if Fed independence ultimately prevails,
01:19the institution won't come out unscathed.
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