[Trump Shifts Stance to 'Embrace Inflation,' Potentially Providing Policy Space for New Fed Chair Walsh] BlockBeats News, June 11, according to CNBC, U.S. President Trump has recently shown a significant shift in his statements regarding inflation and interest rates. Following a 4.2% year-over-year increase in May's CPI, he publicly stated, 'I like inflation,' and described the related data as 'great,' contrasting with his previous frequent criticism of former Federal Reserve Chair Jerome Powell. Market analysts believe this change in attitude could provide a more relaxed political environment for the new Federal Reserve Chair, Kevin Walsh, in making monetary policy decisions, allowing him to face less political pressure without immediately cutting interest rates. Reports indicate that the market currently widely expects the Federal Reserve to maintain the federal funds rate in the 3.5% to 3.75% range at the upcoming June 17 FOMC meeting. Since taking office, Walsh has repeatedly emphasized the need to focus on the 'underlying inflation rate' rather than short-term price fluctuations and has leaned toward maintaining a cautious stance until inflation shows a clear decline. Recent inflationary pressures driven by rising energy prices and geopolitical conflicts have also reinforced the view among some regional Fed officials to delay rate cuts or even reassess the possibility of further rate hikes. Analysts point out that Trump's public statement supporting Walsh's 'independence' may provide the Federal Reserve with a certain policy buffer period in the short term. The market will closely watch this FOMC meeting and the subsequent press conference to assess whether there are structural changes in the monetary policy trajectory. [Original Link]