UK Media: Waller Insists on Cautious Market Guidance, May Consider September Rate Hike if Inflation Strong

TechFlow news, August 6, according to the Financial Times, even after triggering a massive sell-off of Treasuries by deciding not to reveal too many details of the interest rate strategy, Federal Reserve Chair Walsh still maintained his consistent concise communication style. Sources close to Walsh stated that he admitted making some mistakes during the first 10 weeks of leading the world's most important central bank, including failing to reinforce his key message regarding price stability, and causing confusion over whether his long-term plan to reform the Federal Reserve would impact near-term policy decisions.

But they insisted that these mistakes were not sufficient grounds to overturn Walsh's reform plan for the Federal Reserve. Insiders also revealed that if inflation data released in the coming weeks is strong, and market expectations for rising borrowing costs increase accordingly, Walsh is prepared to raise interest rates at the September meeting. Insiders added that although the Federal Reserve Chair raised the possibility of shrinking the central bank's $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool for now and will be used at the upcoming meeting if necessary. (Jin10)