On August 28, Federal Reserve Chairman Walsh stated on Friday that if policymakers cannot be confident that inflation is "declining at a clear and sufficiently rapid pace" back to 2%, the Fed "still has work to do." This suggests that if price pressures do not improve, the Fed may consider raising interest rates next. Walsh made it clear that he remains committed to the Fed's long-standing policy of managing inflation through interest rate adjustments. This significantly increases the likelihood of the Fed's next rate hike, which could create a divergence with President Trump, who has long sought rate cuts. This statement effectively eliminates the ambiguity left in previous remarks. At a press conference at the end of July, Walsh refrained from responding extensively to whether a rate hike was necessary to address the inflation issue, which has significantly risen this year and has been above the Fed's target for over five consecutive years.