Last night, Walsh held his first press conference as the chairman of the Federal Reserve. The market had originally expected a rate cut, but the message he conveyed was that it was too early to discuss a rate cut now. ​ I have summarized several of the most important signals one ⃣ The 2% inflation target will not be compromised Walsh made it clear that the Federal Reserve will firmly achieve its 2% inflation target. This means that even if economic growth slows down, as long as inflation is not completely controlled, the Federal Reserve will not easily turn to easing, and anti inflation takes priority over stimulating the economy. ​ two ⃣ High interest rates may last longer Keeping interest rates unchanged at this meeting is in line with expectations. But what really made the market nervous was that Walsh did not release any clear signals of interest rate cuts. On the contrary, he emphasized that future decisions will continue to rely on data rather than market expectations. The market wants to cut interest rates, but the Federal Reserve does not want to do so temporarily. ​ three ⃣ The Federal Reserve will reduce spoilers in the future This was the most underestimated content last night. In the Powell era, dot charts, forward guidance, and official speeches all conveyed policy directions to the market in advance. ​ And Walsh believes that the market is overly dependent on the Federal Reserve's forecasts, and in the future, the market will need to interpret economic data on its own. This means that market volatility may significantly increase in the future. ​ four ⃣ Initiate internal reforms Walsh announced the establishment of multiple working groups to study inflation, employment, productivity, data quality, and the Federal Reserve's communication mechanisms, indicating that he is not only adjusting interest rate policies, but also reshaping the future operation of the Federal Reserve. ​ The information released last night can be condensed into one sentence: the expectation of interest rate cuts has been postponed, and the market was originally betting on further easing of liquidity in the second half of the year. And Walsh's attitude is to first see inflation return to the target before discussing interest rate cuts. ​ Overall bearish sentiment towards the financial market