Today, the U.S. stock market diverged under the influence of Walsh’s pre-market remarks. Walsh’s speech this time continued to maintain his previous style and direction. He said that the Federal Reserve will not provide forward guidance on the future path of interest rates, and he hopes that policymakers will hold thorough discussions at each FOMC meeting based on the latest data, rather than signaling the policy direction to the market in advance.

This is consistent with the views he expressed during his FOMC debut as well; both are intended to change the Federal Reserve’s current decision-making paradigm.

At the same time, he also shared his views on AI, saying, “Whether AI has an inflationary effect should be decided by the central bank.” This lines up exactly with recent talk that the Federal Reserve is prepared to use AI’s impact on employment—even to the point of deflation—as a reason to change its inflation-calculation model.