Summary of the July FOMC Meeting

English summary

· Statement content 1. The Fed held rates steady this month, with a vote of 9:3. 2. The statement retained the wording of ample reserves. Key post-meeting statements: 1. Important · When asked how to measure the 2% inflation target, Warsh said, "We will use a richer set of inflation indicators and place more emphasis on the contributing factors of inflation itself." 2. If inflation remains elevated in the future, interest rate policy may be an important tool. Currently, the employment goal is well controlled, but the inflation goal still needs effort. Takeaway: 1. Warsh undoubtedly places great importance on inflation, but more importantly is how to understand the inflation in Warsh's eyes (including the understanding of working group members) - whether it is the market-focused PCE or possibly a switch to trimmed-mean PCE. At least in this meeting, Warsh signaled improving the inflation target. 2. The next window to focus on is the August Jackson Hole conference.