Fed Chair Kevin Walsh said that price stability and controlling inflation remain the Fed’s top priorities behind today’s rate hike.

Here is what he said:

1. A strong labor market, higher-than-expected CPI and PPI data, and the latest escalation of the war drove this decision.

2. The decision passed unanimously, 12-0, because the Fed’s 2% PCE inflation target remains the primary objective.

3. The overall U.S. economy remains strong, domestic spending is healthy, and credit flows are robust.

4. The rise in Treasury yields is partly attributable to competition for capital between the government and supercomputing companies, while also reflecting the strength of the economy.

5. The Fed cannot directly control individual prices such as food or oil, but it can prevent these increases from spreading further throughout the economy.

6. In response to President Trump’s push for lower interest rates, Walsh said that price stability remains the goal, which benefits low-income Americans the most.

7. Walsh offered no personal guidance on future rate hikes, but the Fed’s own median projection shows that rates will reach 4.1% by year-end, above today’s new range.

8. It is difficult to call financial conditions restrictive, he said, adding that this view is widely shared within the FOMC.

9. The obvious fact is that inflation is too high and has persisted for too long.

10. I am not holding my breath waiting for any single data point. The trend is what matters; data points are noisy.

11. Today’s action begins to show how seriously we take this matter.

12. Inflation is a choice.
#美联储继续加息