**[Analyst: The Federal Reserve Needs to Tighten Monetary Policy]** Golden Finance reports that, according to analyst Bill Dudley, regardless of fluctuations in high-frequency data, the rationale for the Federal Reserve to tighten monetary policy remains very strong. Firstly, given the current economic conditions and the asymmetry between the Federal Reserve's dual goals of achieving full employment and price stability, adopting a tighter monetary policy is appropriate. On one hand, the unemployment rate has remained stable and is very close to the level that Federal Open Market Committee members consider consistent with full employment. On the other hand, inflation remains elevated, with core inflation indicators generally ranging between 2.4% and 3.3%. In this context, monetary policy should adopt tightening measures. Secondly, there is almost no evidence to suggest that the current monetary policy is restrictive. The federal funds rate has remained at its current level or higher for nearly four years, and the unemployment rate has been relatively stable, staying at full employment levels for the past two years. If the policy were truly restrictive, we would theoretically see rising unemployment and falling inflation. The continued strength of financial market conditions also supports this judgment. Thirdly, the AI investment boom also supports further tightening of monetary policy. The surge in AI-related spending is driving real GDP growth and pushing up prices in several sectors, such as electricity costs and semiconductor chip prices. Although AI is expected to enhance productivity and help reduce inflation in the long term, its current dominant effect is stimulating demand and driving up prices. Fourthly, the Federal Reserve's credibility is at risk. Inflation has exceeded the Fed's 2% target for more than five consecutive years. If the Fed hesitates, market participants may perceive Waller's hawkish rhetoric as mere "posturing." The Fed should not tighten monetary policy solely to bolster its anti-inflation credibility. However, the reality is that the risks faced by the Fed are asymmetrical: if monetary policy is insufficiently restrictive in the coming years and fails to bring inflation back to 2%, the cost will outweigh the consequences of slightly over-tightening and later proving it excessive. Waller has consistently made high-profile commitments to achieving price stability and maintaining the Fed's independence, but actions speak louder than words. While forming task forces and proposing new ideas are commendable, monetary policy cannot be outsourced to external experts or financial market participants. The Federal Reserve needs to step up and tighten monetary policy. Bill Dudley predicts that the Federal Reserve will maintain its current monetary policy at next week's meeting. However, by the fall, the pressure on the Fed to tighten monetary policy will become overwhelming. *(Jin10 Data APP)*