Wu said he learned that the U.S. Federal Reserve submitted a July monetary policy report to Congress, stating that inflation in the United States rose again this year. In May, the overall PCE price index increased 4.1% year over year, while core PCE rose 3.4% year over year. The report attributed this mainly to higher tariffs, energy price increases triggered by the conflict in the Middle East, and increased demand for AI-related high-tech products.

The U.S. labor market remained generally stable. In June, the unemployment rate was 4.2%, and real GDP annualized growth in the first quarter was 2.1%. Since the beginning of the year, the FOMC has kept the target range for the federal funds rate at 3.5% to 3.75% and again emphasized achieving price stability.

The report also included the June economic projections: the median forecast by Federal Reserve officials for 2026 PCE inflation and core PCE inflation was 3.6% and 3.3%, respectively. The median forecast for the federal funds rate at year-end was 3.8%, higher than the 3.4% forecast made in March.