Fed Chair Contender Warns of Weak Jobs Data, Calls for More Rate Cuts
Meanwhile, Federal Reserve Governor Christopher Waller, a contender to replace Jerome Powell as chairman, has weighed in on the current economic landscape. Speaking at the Yale CEO Summit, Waller emphasized the need for more rate cuts, citing weak job data and a K-shaped economy.
Waller’s Comments on Rate Cuts
According to Waller, the Fed is still about 50 to 100 basis points above neutral, and he argues for a rate closer to 3%. “We’re close to zero job growth,” he said. “That’s not a healthy job market. AI is stalling hiring; there’s not going to be any reacceleration of inflation.”
Central Bank Independence
Waller also addressed the issue of central bank independence, stating that while accountability is crucial, the Fed should maintain its independence. “We want central bank independence, but we still want to be accountable to the American public,” he said.
Growth Outlook
Waller estimates 1.6% growth for 2025, largely due to a negative first quarter. He predicts a stronger picture for 2026, citing stimulus effects, productivity effects, and a waning of tariff effects.
Stablecoins and the US Dollar
Waller also spoke about stablecoins, advocating for an even playing field in the payment space. “If you want competition in the payment space, go to stablecoins,” he said. “These are very fast and efficient ways to move money across the globe.”
Other News
BP has hired its first female CEO, Meg O’Neill, who will take over in April. The company is in turnaround mode, looking to recover from the abrupt departure of ex-CEO Bernard Looney. YouTube has been granted exclusive global streaming rights to the Oscars from 2029 through 2033, ending a five-decade partnership with ABC. Amazon’s AGI head, Rohit Prasad, is stepping down as concerns about the competitiveness of the company’s AI operations continue to mount.
Meanwhile, China’s youth is seeking government jobs, with nearly 4 million taking the civil service exam last month. The U.S. has sold $11.1 billion worth of arms to Taiwan, the biggest package of its kind, as the island readies itself for a potential conflict with mainland China.
Market Updates
S&P 500 futures are up 0.41% this morning, while the STOXX Europe 600 was up 0.29% in early trading. Japan’s Nikkei 225 was down 1.03%, and China’s CSI 300 was down 0.59%.
CEO Daily is compiled and edited by Joey Abrams, Claire Zillman, and Lee Clifford. This is the web version of CEO Daily, a newsletter of must-read global insights from CEOs and industry leaders.
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