Federal Reserve governor and chair candidate Christopher Waller joined “Kudlow” to shut down Chairman Jerome Powell’s claim the agency is driving through “fog.”
Powell said Wednesday the lack of key economic data caused by the government shutdown has given the Federal Reserve an unclear view of the economy.
“This fog story has just got to stop,” Waller told FOX Business host Larry Kudlow. “The fog might tell you to slow down. It doesn’t tell you to pull over to the side of the road. You still have to go. You may want to be careful, but it doesn’t mean to stop, and that’s the right thing to do with policies — to continue cutting.
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“What do you do if you’re driving in a fog? You slow down,” Powell said during a Federal Open Market Committee meeting.
Waller is one of five on the candidate list to replace Powell. Contenders include Michelle Bowman, Kevin Hassett, Rick Rieder and Kevin Warsh.
Waller said he’s ready to take the position if chosen.
“If the president asks me, I will serve,” Waller said. “He asked me once before, and I said yes. … I’ll say yes again.”
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The economist has served on the Federal Reserve’s Board of Governors since 2020 after being nominated by President Donald Trump.
Waller insisted the Federal Reserve has enough data, arguing the halt in decision-making is unnecessary.
“We actually have a lot of data, just because the official government data hasn’t come out. We have a lot of data,” he said.
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The governor also argued tariffs are having a “minor” effect on the economy, and inflation is not a worry.
“We expect it to be coming down,” Waller said. “All of our forecasts have inflation coming back down to target. So, yes, it’s high, and it’s been high, but it is fully coming back.”
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Waller identified the labor market as his biggest concern and made predictions about the artificial intelligence revolution, claiming things could be different in a year or two. He said he’s a “big optimist” about AI.
“It’s still not quite there. We’re not seeing it yet in the productivity. … But 12 months, 24 months, I think you’re going to start seeing some big changes,” he said.
