Source: Telegram Channel YIELD & SPREAD Fed Chairman Kevin Walsh (Hon-gun facti

Source: Telegram Channel YIELD & SPREAD

Fed Chairman Kevin Walsh
(Hon-gun faction, ex officio)

1. Prices are significantly above the target level (well a head of the 2% goal). The continued high prices are burdensome. Economic activity expands at a solid pace

2. Recent developments do not imply a prelude to inflation

3. The timing of the leadership change is an opportunity to review existing practices. Short and concise changes to the statement. Exclusion of existing expressions. Elimination of forward guidance that is not appropriate for current monetary policy

4. Refrain from submission projects of my own

5. Commitment to establish TF in five sectors: communications, balance sheet, data sources, productivity and employment, and the Fed's inflation framework

6. Propose a number of changes, including the summary of projection

7. The balance sheet TF will review the advantages and disadvantages of the ample reserve system, and the communications TF will work on SEP improvement

8. Data TF will analyze new data sources and methodologies, productivity and employment TF will analyze technological advances such as AI, and inflation framework TF will analyze the causes of inflation

9. 2% inflation is the Fed's long-held target. No revision review of target until price target is achieved. Target price revision is not TF's job

10. The Fed's monetary policy is tight from a housing market perspective, but not from a financial market perspective. The intensity of tightening is uneven (uneven)

11. It is also necessary to review the dot plot system. Members are not entangled in the projections they submitted. When submitting the projections, they could not feel very firm belief

12. I personally don't think that the dot plot system is very helpful in the policy operation (submitting is not helpful in the conduct of the policy)

13. Press conferences must have a very useful means of communication or something really important to convey

14. Some changes to come may be worth holding a press conference

15. Fed Fails To Meet Price Target Over Last Five Years. To Correct It

16. Most data is based on old-fashioned methods

17. Markets are most efficient when responding to newly released data; inefficient when worried about how the Fed will react to that data

18. Financial market policies are the most important information for central banks

19. The Fed cannot have a significant impact on prices in certain sectors, such as food and energy. The Fed will focus on preventing a secondary shock from rising prices

20. A weekly meeting with the Treasury Secretary is very useful. Three meetings have been held so far. The Fed should have a broad view but a limited mandate (needs to have a wide lens but a narrow limit)

21. In most areas except the housing market, monetary policy is not currently tight

22. All members agree that no further austerity is needed at this point