Castle Securities stated that the market questions Walsh's policy ideas and warns of the risk of a negative feedback loop.

Castle Securities stated that Federal Reserve Chairman Kevin Walsh has committed to curbing inflation but did not clarify how this will be implemented, creating new uncertainty for investors. Although Walsh has repeatedly indicated that the Federal Reserve needs to lower consumer price increases that have exceeded target levels for five consecutive years, the Fed maintained interest rates last week, even with three policymakers supporting an immediate rate hike. Instead, Walsh believes that the recent rise in U.S. Treasury yields has tightened financial conditions, partially fulfilling the role of the Fed's tightening policy in the market. He also hinted that after evaluating the monetary policy framework, the Fed may reconsider whether to continue using its preferred inflation gauge as the current policy benchmark. Investors reacted by selling long-term U.S. Treasuries, driving up inflation expectations and causing the dollar and stock markets to decline. Nohshad Shah, Head of Fixed Income Sales for Europe, the Middle East, and Africa at Castle Securities, wrote in a report that these market fluctuations highlight "the challenges to the credibility or clarity of the policy framework."