Trump's shift to "accepting inflation" may provide policy space for new Federal Reserve Chairman Warsh.

According to a CNBC report on June 11th, US President Trump's recent statements regarding inflation and interest rates have shown a significant shift. Following the May CPI increase of 4.2% year-on-year, he publicly stated, "I like inflation," and called the data "great," contrasting with his previous frequent criticisms of former Federal Reserve Chairman Powell. Market analysts believe this change in attitude may provide a more relaxed political environment for new Federal Reserve Chairman Kevin Warsh in monetary policy decisions, allowing him to withstand less political pressure without immediately cutting interest rates. The report states that the market generally expects the Federal Reserve to maintain the federal funds rate at 3.5% to 3.75% at its upcoming policy meeting on June 17th. Since taking office, Warsh has repeatedly emphasized focusing on "underlying inflation" rather than short-term price fluctuations and has tended to maintain a cautious stance until inflation has clearly subsided. Recent increases in inflation due to energy prices and geopolitical conflicts have also reinforced the views of some regional Federal Reserve officials regarding delaying rate cuts or even reassessing the possibility of rate hikes. Analysts point out that Trump's public statement on Warsh's "independence" may give the Federal Reserve a policy buffer in the short term, and the market will focus on this interest rate meeting and the subsequent press conference to determine whether there will be structural changes in the path of monetary policy.