Key Points of the Federal Reserve FOMC Statement and Walsh Press Conference FOMC statement: 1. Interest rate resolution: Maintain the interest rate unchanged at 3.5% -3.75% for the fourth consecutive time; The committee unanimously agreed on the interest rate decision this time. 2. Interest rate path: Walsh absent dot matrix, half of officials consider raising interest rates within the year; The median expectation for the federal funds rate over the next three years has been raised, while the long-term expectation remains unchanged. 3. Inflation situation: If inflation remains above the committee's 2% target, the committee will achieve price stability; This year, PCE and core PCE expectations have been significantly raised. 4. Economic situation: Despite the high uncertainty brought by the Middle East conflict, economic activity continues to expand at a steady pace; The expected GDP growth rate for this year has been slightly lowered. 5. Employment market: Employment growth keeps pace with labor force growth, and the unemployment rate remains relatively stable; The expected unemployment rate for this year has been slightly lowered. 6. Change and adjustment: The statement has abolished the tradition of disclosing the specific voting situation of the voting committee, and the wording has been significantly simplified compared to the past. The wording implying further interest rate cuts has been removed. Walsh press conference: 1. Reshaping the statement: Today's policy statement is shorter and simpler. Omitted the old wording and only stated the facts. We have abandoned forward guidance. 2. Absent bitmap: No bitmap prediction was provided today. The dot matrix is drawn with a pencil and can be erased. My personal submission of dot matrix graphics is not helpful for policy implementation. 3. New working groups: Work groups will be appointed in the five areas of monetary policy, and they will begin working in the coming weeks. Each working group will complete its work before the end of the year. 4. Inflation assessment: A 2% inflation rate has been the long-term goal of the Federal Reserve. There is no reason to re-examine this goal until it is achieved. It has been five years since the inflation target was achieved, and now we need to start correcting it. 5. Economic data: Some of the economic data received may only be echoes of history. We hold an open attitude towards new analysis methods, private data, and official data reform. Financial market prices are the most important source of information guiding central banks. Private enterprises use real-time information that does not require significant revisions, while government data is often subject to revisions. 6. Employment market: The committee believes that the labor market is stable. The employment data has been developing in a positive direction. There is no need to choose between full employment and price stability. 7. Communication change: It is expected that a comprehensive review of communication methods, including press conferences, dot matrix diagrams, and meeting arrangements, will be conducted by the end of the year. A press conference is a very effective way of communication. But I hope to convey important information at the press conference. 8. External relations: I have met with US Treasury Secretary Bessent three times so far. I have met with the Inspector General regarding the renovation of the Federal Reserve headquarters building. It has not been disclosed whether he communicated with Trump after taking office. 9. Market reaction: During the period from the interest rate decision to the end of Walsh's speech, risk assets such as the US stock market fell across the board, gold fell more than $150, US Treasury bonds rose 15BP, the US dollar index rose nearly 100 points, and interest rate futures pricing increased by 18BP this year to 39BP.