Commentary on the Congressional Testimony of Walsh Walsh's words sounded calm, but in fact, there was a huge amount of information. Walsh had other thoughts, and he probably wanted to break the rules of the Federal Reserve's past games. On the surface, Walsh appears to be exploring the issue of data accuracy in statistics, but from a transactional perspective, the core logic behind this is simply four words: 'switching the ruler'. If the new Federal Reserve continues to be held hostage by severely lagging and criticized official data such as the BLS (Bureau of Labor Statistics) and BEA (Bureau of Economic Analysis) for failing to achieve its inflation target for 63 consecutive months, his inauguration will still be a dead end. Publicly categorizing official inflation measurement indicators as "imperfect indicators" and even proposing to establish a working group to introduce "external source data" is essentially the Federal Reserve reclaiming the ultimate explanatory power on whether inflation meets standards. This matter has several profound substantive impacts on the macro pricing that will follow: Firstly, this is an extremely clever excuse for "implicit expansion and interest rate cuts". Directly announcing the abandonment of the 2% inflation target would trigger a bond market crash and a US dollar credit crisis, but using a different yardstick to measure it is equivalent to customizing a great deal of flexibility for future monetary policy operations. This means that even if the official CPI still shows stickiness in the future, as long as the "external data" he cites shows improvement, he has sufficient reason to defend the dovish operations in front of Congress. His demand for policy flexibility far outweighs his insistence on dogmatism. Secondly, the absolute dominance of the traditional "CPI data day" over the market may be diluted in the future. In the past few years, macro funds and machine algorithms have almost watched BLS readings and used calculators. Once the data is released, stocks, bonds, and foreign exchange are priced unilaterally. If the future decision-making weight of the Federal Reserve begins to tilt towards unofficial high-frequency data, the linear trading logic of "wild if missed, and plummeting if beat" will become extremely dangerous. The expected game in the market will shift from "guessing official data" to "guessing which data the Fed really believes in". In the end, when it comes to our trading, this is actually an invisible call option on risky assets such as US stocks and cryptocurrencies. Because this statement implies that the future Federal Reserve will be more able to "tolerate" certain types of structural inflation and will no longer tighten liquidity in order to suppress statistically lagging rent or used car data. The next key variable is not how BLS can improve, but what exactly does the "external source" in his mouth point to - Truflation? Is it Zillow's real-time rent? Or is it high-frequency on chain data for credit card consumption? If we can find out in advance the "new benchmark" he uses to replace CPI, we will have the trump card for macro pricing in the next stage.