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

Odaily Planet Daily News Federal Reserve Chairman Walsh insisted during his testimony on Tuesday on his commitment to not providing forward guidance on interest rates, with the entire testimony barely touching on interest rate policy. Walsh stated that the Federal Reserve is firmly committed to maintaining price stability and pushing inflation back down to the 2% target, while emphasizing that the Fed has the policy tools needed to achieve this goal. He said: "The more we focus on our own responsibilities, the further we can stay away from politics." Walsh also stated that the Federal Reserve will re-examine its inflation framework to gain a deeper understanding of the factors driving inflation and what measures can be taken to address it.

Regarding the multiple new working groups established by the Federal Reserve, Walsh stated that these groups are currently still in the research and exploration phase. He pointed out that relevant discussions will first take place among the 19 policymakers, that the entire process will remain open and transparent, and that research results and policy ideas will be regularly shared with the public.

On balance sheet policy, Walsh emphasized that the balance sheet is part of monetary policy, not merely an issue of financial market operations. Any balance sheet policy adjustments will be fully communicated and explained in advance, allowing the market sufficient preparation time. When asked how he would respond if Trump attempted to interfere with Federal Reserve policy, Walsh responded that he would continue to fulfill his duties and insist on independently formulating monetary policy. He stated that the Federal Reserve has demonstrated its commitment to policy independence and institutional reform. (Jinshi)