The Federal Reserve released its July monetary policy report to Congress on Friday in Washington, D.C., which emphasizes that it will work to achieve price stability. The report points out that due to tariffs, “consumer inflation indicators rose steadily” in the second half of last year; since this year, due to the Iran war's push up energy prices, inflation has risen further. At the same time, the report also pointed out that some other inflation indicators, including the PCE cut-off average mentioned by Federal Reserve Chairman Walsh earlier, have declined somewhat over the past year. The Federal Reserve said it will be prepared to use all policy tools to achieve the goals of full employment and price stability, especially when the federal funds rate is subject to the effective lower limit. The report also said that labor productivity growth in the US is still strong.

The Federal Reserve released its July monetary policy report to Congress on Friday in Washington, D.C., which emphasizes that it will work to achieve price stability. The report points out that due to tariffs, “consumer inflation indicators rose steadily” in the second half of last year; since this year, due to the Iran war's push up energy prices, inflation has risen further. At the same time, the report also pointed out that some other inflation indicators, including the PCE cut-off average mentioned by Federal Reserve Chairman Walsh earlier, have declined somewhat over the past year. The Federal Reserve said it will be prepared to use all policy tools to achieve the goals of full employment and price stability, especially when the federal funds rate is subject to the effective lower limit. The report also said that labor productivity growth in the US is still strong.