PANews reported on June 29 that according to Jinshi citing The Wall Street Journal, Trump discussed with Walsh the matter of replacing Powell in February and March this year, but Walsh suggested that Trump should not take any such action before Powell's term ends in May 2026. He has been critical of the Federal Reserve recently. In a speech in Washington, D.C. on April 25, he said that the "current trauma is largely self-inflicted" and called for a "strategic reset" to mitigate the loss of credibility and damage to the Federal Reserve's position.
However, Walsh's past remarks also suggest that he might take a hawkish stance on inflation, which could be a concern for the White House, which is pushing for rate cuts. A person close to the current administration said that Trump's enthusiasm for Walsh is cooling.
