Fed's Third-in-Command: Interest rates are in a favorable position, and there is reason to believe inflation has peaked.

John Williams, President of the Federal Reserve Bank of New York (a permanent voting member of the FOMC and often regarded as the third-most influential official at the Federal Reserve), stated that although AI-driven demand is exerting upward pressure on inflation, the current stance of monetary policy remains "well positioned" to bring inflation back to the 2% target.

wallstreetcnJul 15 21:08

Waller’s monetary policy hearing debut: Will act based on data even amid Trump’s criticism; June CPI cooldown does not mean the inflation 'mission is accomplished'

Wasserman reiterated that inflation is a choice, stating the Federal Reserve has the tools to achieve price stability and will not shift blame; if pressured by Trump, he would fulfill his duties; he pledged to break 'sticky prices'; he suggested that the low-rate policies of the 1990s—implemented during a productivity boom—should not be mechanically applied to today’s AI investment surge; he emphasized the Fed’s dual mandate of employment and inflation and affirmed it would not venture into other areas, adding that sufficient warning would precede any balance sheet adjustments; five Fed working groups are currently in a 'fact-finding phase' and will first share their insights with policymakers; the Fed will discuss reducing the frequency of public statements, clarifying that communication adjustments aim to ensure sound monetary policy—not to reduce transparency; the Fed should not arbitrarily intervene in markets, though using its balance sheet during crises is an exception. Dubbed the 'new Fed wire,' Wasser

wallstreetcnJul 15 01:57

Inflation cools broadly! U.S. CPI rose 3.5% year-over-year in June, significantly below expectations, and declined month-over-month for the first time in six years, while core CPI inflation narrowed to 2.6%.

U.S. inflation has shown a significant turning point. The June CPI recorded its first month-over-month decline in six years, while core inflation remained largely flat, prompting markets to sharply reduce bets on a Federal Reserve rate hike in July.

wallstreetcnJul 14 20:56

Wass: Fed Has 'Zero Tolerance' for Persistently High Inflation

Federal Reserve Chair Waller reaffirmed his stance against inflation, taking a firm position on persistently high prices and pledging to get monetary policy right.

wallstreetcnJul 14 20:38

TF Securities Research: Rate Hike or Rate Cut?

We believe that the FOMC meeting on July 29 will most likely keep interest rates unchanged. Cooling labor market conditions have reduced the urgency for near-term rate hikes, but the Federal Reserve may still lack sufficient grounds to pivot toward rate cuts until core inflation shows a sustained and broad-based decline.

Tianfeng ResearchJul 14 16:15

Waller’s hearing debut may face numerous tough questions: on inflation, reaction function, interest rates, independence, and more

Facing questioning from lawmakers tonight, Wall Street does not expect the Federal Reserve's new chair— who has refused to offer any forward guidance—to provide clear answers, and only hopes he will share his views on the economy.

Golden10 DataJul 14 12:29