After Walsh's hawkish remarks, Trump said: "Raising interest rates is absurd. Walsh will do what he must do."

On Monday, U.S. President Trump stated at the White House that he has great respect for Federal Reserve Chairman Kevin Walsh and said that when it comes to interest rates, "he will do what he has to do."

Last Friday at the Jackson Hole symposium, Walsh said that if policymakers cannot gain enough confidence to confirm that inflation is returning toward the 2% target, then the Federal Reserve "still has work to do."

After Walsh's speech at Jackson Hole, Barclays now expects the Federal Reserve to raise interest rates two more times this year, in September and December. Previously, Barclays did not expect any further rate hikes this year. Currently, the market’s pricing for a rate hike in September has risen to about 60%.

Trump has repeatedly urged for lower interest rates. On Monday, Trump said, "In my view, we should pay much lower interest rates than anywhere else in the world, and raising rates is ridiculous."

As of July, the Federal Reserve's preferred inflation gauge—the Personal Consumption Expenditures (PCE) Price Index—remained at a year-on-year increase of 3.7%. With the November midterm elections approaching, issues of cost of living and affordability are becoming a primary concern for voters.

Federal Reserve officials will hold a meeting in September to discuss whether to adjust interest rates.