Mounting pressure is building for the Federal Reserve to raise interest rates, and Trump may not necessarily direct his criticism at Walsh.

Foreign media analysis indicates that U.S. President Donald Trump has been pressuring newly appointed Federal Reserve Chair Walsh to cut interest rates as soon as possible, but Wall Street investors are increasingly unanimously betting on the opposite outcome. The recent renewed escalation of tensions in Iran, the implementation of a new round of global tariffs, the ongoing data center investment boom, and sustained strong U.S. consumer spending have together heightened market and Federal Reserve concerns about inflationary pressures, reinforcing expectations that the central bank will maintain tight policy or even raise rates further. Markets widely expect the Fed to hold interest rates steady at its Wednesday meeting. However, whether Walsh, who took over as Fed chair at the end of May, can continue to suppress calls for rate hikes within the committee increasingly depends on whether inflation can improve sustainably. Current polls show U.S. citizens are dissatisfied with Trump’s economic performance, and higher interest rates will undoubtedly further undermine the economic outcomes the White House seeks. Trump has long advocated for interest rate cuts and reiterated this position again this week. Even if the Fed ultimately opts to raise rates, Trump may not initially target Walsh, and is more likely to direct criticism at other Fed officials. Trump has so far appointed three members of the Federal Reserve’s seven-member Board of Governors. He previously said: “Kevin is very capable, but he has a committee, and its members are all highly politicized. He wants to do the right thing, I know what he’s aiming for, but he needs the approval of some people who may have ulterior motives. Interest rates should be lowered.”