On February 2, Michael Feroli, Chief U.S. Economist at JPMorgan, predicted in a report that Walsh might cater to interest rate cuts in the short term, at least for this year. However, he also warned: "Over time, especially after the midterm elections when the government enters a lame-duck period, his stance is likely to be revised, even returning to his more hawkish nature."
It is worth noting that JPMorgan has not adjusted its expectations for rate cuts due to Walsh's nomination. Feroli stated that even if Walsh takes office, the bank still expects the Federal Reserve to "hold steady" for the remainder of the year.
Notably, a former Federal Reserve official who worked with Walsh also believes that the "real Walsh" will eventually emerge. The anonymous official told CNN: "Walsh has coveted this position for too long. He is a smooth operator, extremely skilled at climbing the ladder. But this position is his lifelong pursuit. If he merely becomes a yes-man to secure the role, it would be a pyrrhic victory. The longer he stays in this position, the more likely he is to show independence."
