Walsh emphasized the independence of monetary policy and reiterated his commitment to the 2% inflation target

Odaily Federal Reserve Chairman Jerome Powell insisted during his Tuesday testimony on his commitment to not providing forward guidance on interest rates, with the entire prepared remarks barely touching on rate policy. Powell stated that the Fed is firmly dedicated to maintaining price stability and pushing inflation back down to its 2% target, while emphasizing that the central bank possesses the policy tools necessary to achieve this goal. He said: "The more we focus on our own responsibilities, the further we can stay away from politics." Powell also noted that the Fed will reexamine its inflation framework to gain a deeper understanding of the factors driving inflation and the measures available to address it.

When discussing the newly established working groups at the Fed, Powell stated that these groups are still in the research and exploration phase. He pointed out that relevant discussions will first take place among the 19 policymakers, the entire process will remain open and transparent, and research findings and policy ideas will be regularly shared with the public.

Regarding balance sheet policy, Powell emphasized that the balance sheet is a component of monetary policy, not merely an issue of financial market operations. Any adjustments to balance sheet policy will be fully communicated and explained in advance, providing the market with sufficient preparation time. When asked how he would respond if President Trump attempted to intervene in Fed policy, Powell responded that he would continue to fulfill his duties and maintain the independence of monetary policy. He stated that the Fed has already demonstrated its commitment to policy independence and institutional reform. (Jin Shi)