The first warning from Waller after taking office! Trump speaks out publicly: There is no reason to raise interest rates; raising rates is simply an attempt to strangle our success.

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On the eve of Walsh hosting his first Federal Reserve interest rate meeting, Trump publicly pressured the central bank chief whom he personally nominated, demanding a rate cut.

In an interview with NBC's "Meet the Press" on Sunday, Trump made his stance clear: "There is no reason to raise rates." He said, "We built this country by doing things right and keeping interest rates low. If they raise rates, they're trying to choke off success. I don't want to choke off success. In fact, we should lower rates."

On the surface, Trump gave Walsh plenty of space, but his words had an undercurrent. "Kevin is outstanding, and I hope he acts according to his own judgment," he said. "But my feeling is that when a country is doing well, it shouldn't immediately raise rates to punish it, but should be encouraged instead."

Last month, Walsh was officially confirmed as Federal Reserve Chair and will preside over his first Federal Open Market Committee (FOMC) meeting from June 16 to 17.

The timing of Trump's remarks is quite sensitive. Last Friday, a strong jobs report was released, showing that the U.S. labor market has stabilized after a turbulent 2025. The market quickly speculated that the Fed might be forced to raise rates within the year to address inflationary pressures.

Inflationary pressure is real, and "hawkish voices" exist within the Fed

The root cause of rising inflation is the Middle East war. At the start of the conflict, Iran blocked the Strait of Hormuz, causing oil prices to surge, and this upward pressure has spread throughout the U.S. economy. In April this year, U.S. inflation rate rose to 3.8%, a three-year high. According to economists surveyed by Bloomberg, May's data, to be released this Wednesday, is expected to rise further to 4.2%.

Fed officials have openly expressed concern. Beth Hammack, President of the Cleveland Fed and FOMC member, said Friday: "If the recent trends continue, it may soon be necessary to take action." She noted the latest jobs report shows the labor market is "roughly balanced," but "high inflation is the bigger risk."

Treasury Secretary Besson's stance is relatively moderate. He said it's reasonable for the Fed to wait until the impact of the war on inflation becomes "clearer" before further rate cuts.

Trump's logic: When the economy is strong, it shouldn't be punished

Faced with this situation, Trump's attitude is: the stronger the economy, the less reason to raise rates.

"We're doing well, but whenever you do well, they want to raise rates, which isn't fair," he said. "It should be the other way around."

Trump has repeatedly demanded the Fed's benchmark rate—currently at 3.5% to 3.75%—be slashed to 1% or lower. He has also repeatedly criticized Walsh's predecessor Powell, calling him a "fool" and "idiot" for not cutting rates fast enough.

Regarding Walsh, Trump ostensibly gave him plenty of space, but with hidden meaning. "Kevin is outstanding, I hope he acts according to his own judgment. I don't want to influence him too much," he told NBC, "but my feeling is that when a country is doing well, it shouldn't immediately raise rates to punish it—there should be encouragement instead."

Walsh previously indicated a preference for reducing borrowing costs, but since the outbreak of the Middle East conflict and the spike in inflation, some FOMC members have begun discussing the possibility of raising rates.

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