Walsh reiterates adherence to the 2% inflation target and emphasizes the independence of monetary policy According to Golden Finance, on July 14th, Federal Reserve Chairman Walsh insisted on his commitment not to provide forward guidance on interest rates during a hearing on Tuesday, and the entire testimony hardly touched upon interest rate policy. Walsh stated that the Federal Reserve is firmly committed to maintaining price stability and pushing inflation back to its target of 2%, while emphasizing that the Fed has the policy tools necessary to achieve this goal. He said, "The more we focus on our own responsibilities, the further we can stay away from politics." Walsh also stated that the Federal Reserve will re-examine its inflation framework to gain a deeper understanding of the factors driving inflation and what measures can be taken to address it. When talking about the multiple working groups newly established by the Federal Reserve, Walsh said that these working groups are still in the research and exploration stage. He pointed out that the relevant discussions will first take place among 19 policy makers, and the entire process will remain open and transparent, with regular sharing of research results and policy ideas to the outside world. In terms of balance sheet policy, Walsh emphasized that the balance sheet is a part of monetary policy, not just a matter of financial market operations. Any policy adjustments to the balance sheet will be thoroughly communicated and explained in advance, and sufficient preparation time will be given to the market. When asked how he would respond if Trump attempted to intervene in Federal Reserve policy, Walsh responded that he would continue to fulfill his duties and insist on independently formulating monetary policy. He stated that the Federal Reserve has demonstrated its commitment to policy independence and institutional reform.