Although inflation is well above the 2% target, Fed policymakers reiterated their commitment to achieving price stability in the semi-annual monetary policy report released in Washington on Friday. This is the first monetary policy report issued by the new Federal Reserve Chairman Kevin Walsh after taking office. The overall tone is optimistic about the US economy. According to the report, economic growth is steady, labor productivity is strong, and the banking system shows little risk. The report points out that inflation has risen over the past year due to Iran's war, tariffs, and soaring costs of technology products. However, the report also emphasized that some other inflation indicators, including the so-called PCE price index ending average, have declined over the past year. This statement is consistent with Walsh's previous view that policymakers need to expand the scope of monitoring inflation indicators to more accurately understand price pressures. Walsh has set up five working groups led by external experts, one of which specializes in studying the inflation framework and is expected to submit reports to policymakers before the end of the year. The monetary policy report said, “Price stability is the foundation for the healthy and stable operation of the economy, and it also helps improve the welfare of all Americans. The Commission is ready to act decisively to ensure that long-term inflation expectations remain stable.” When talking about the impact of the artificial intelligence boom on the economy, the report indicates that the adoption of new technology by enterprises may boost labor productivity. However, the report also emphasizes that the price of computers, electronic products, and software has risen sharply this year, reflecting the new demand for semiconductors and other related materials driven by artificial intelligence construction. On the balance sheet side, the Federal Reserve said it has continued to experience operating losses since the end of 2022. Consolidated deferred assets have been reduced by $7 billion to approximately $236 billion since the beginning of January this year. The report also said that the regional Federal Reserve, which no longer has accumulated losses, paid a total of about 6 billion US dollars to the US Treasury. Earlier this year, the New York Federal Reserve stated that the entire Federal Reserve system is expected to return to profit in 2026. The report also analyzed the forecast records of Fed policymakers, believing that related predictions are still greatly affected by uncertainty. This conclusion is consistent with Walsh's argument for reducing the use of forward-looking guidance.

Although inflation is well above the 2% target, Fed policymakers reiterated their commitment to achieving price stability in the semi-annual monetary policy report released in Washington on Friday. This is the first monetary policy report issued by the new Federal Reserve Chairman Kevin Walsh after taking office. The overall tone is optimistic about the US economy. According to the report, economic growth is steady, labor productivity is strong, and the banking system shows little risk. The report points out that inflation has risen over the past year due to Iran's war, tariffs, and soaring costs of technology products. However, the report also emphasized that some other inflation indicators, including the so-called PCE price index ending average, have declined over the past year. This statement is consistent with Walsh's previous view that policymakers need to expand the scope of monitoring inflation indicators to more accurately understand price pressures. Walsh has set up five working groups led by external experts, one of which specializes in studying the inflation framework and is expected to submit reports to policymakers before the end of the year. The monetary policy report said, “Price stability is the foundation for the healthy and stable operation of the economy, and it also helps improve the welfare of all Americans. The Commission is ready to act decisively to ensure that long-term inflation expectations remain stable.” When talking about the impact of the artificial intelligence boom on the economy, the report indicates that the adoption of new technology by enterprises may boost labor productivity. However, the report also emphasizes that the price of computers, electronic products, and software has risen sharply this year, reflecting the new demand for semiconductors and other related materials driven by artificial intelligence construction. On the balance sheet side, the Federal Reserve said it has continued to experience operating losses since the end of 2022. Consolidated deferred assets have been reduced by $7 billion to approximately $236 billion since the beginning of January this year. The report also said that the regional Federal Reserve, which no longer has accumulated losses, paid a total of about 6 billion US dollars to the US Treasury. Earlier this year, the New York Federal Reserve stated that the entire Federal Reserve system is expected to return to profit in 2026. The report also analyzed the forecast records of Fed policymakers, believing that related predictions are still greatly affected by uncertainty. This conclusion is consistent with Walsh's argument for reducing the use of forward-looking guidance.