Market analysis: Walsh's first meeting may send Trump “bad news”

Comparative news, according to Kim 10, when Kevin Walsh was sworn in as chairman of the Federal Reserve, Trump told the new chairman to “stay independent” and “don't look at me, don't look at anyone, just do your own thing well and do a good job.” But this requirement will soon be tested. After presiding over the meeting for the first time as Chairman of the Federal Reserve, Walsh may have to deliver unwelcome news to Trump — despite Trump's constant calls for lower borrowing costs, the market expects the Federal Reserve to remain the same.

Bill Adams, chief US economist at Comerica Bank, said that in order for the Federal Reserve to cut interest rates, they may need to see a new negative impact on the labor market, whether the conflict in the Middle East worsens or the potential downside risks of artificial intelligence to employment become a reality. If these situations do not happen, it will be difficult for the Federal Reserve to find a reasonable reason to cut interest rates in the current environment. Economists said that steady employment growth over the past three months and rising inflation associated with the Iran war left little room for policy makers to reduce interest rates. Traders have moved their expectations from cutting interest rates to possibly raising interest rates later this year or early 2027 in recent weeks.