A look at the highlights of Fed Chair Powell's semi-annual monetary policy testimony

Golden Finance reported that the highlights of Fed Chairman Powell's semi-annual monetary policy testimony at a glance: 1. Interest rate outlook: reiterated that there is no need to rush to adjust interest rates. If the economy continues to be strong and inflation is not approaching 2%, policy caution can be maintained for a longer period of time. Policy could ease moderately if the labour market unexpectedly weakens or inflation falls more than expected. Neutral interest rates are considered to have risen. 2. Inflation scenario: Long-term inflation expectations appear solid. Inflation is close to the 2 per cent target but remains slightly elevated. Remain focused on achieving the dual-mandate objective. The Fed's framework assessment will not focus on the inflation target. 3. Labour market: Unemployment remains low and stable. Labour market conditions have cooled from their previous overheated state and remain solid and have not become a source of inflationary pressure. Labour market conditions remained broadly balanced. 4. Bank regulation: Commitment to tailor bank regulation in an effort to avoid excessive burdens on banks. There is a need to revisit the issue of ‘de-banking’. Commitment to the ultimate goal of Basel III. 5. 5. Long-term interest rates: The Fed has no control over long-term interest rates, and the reasons for high long-term interest rates have nothing to do with Fed policy. Long-term interest rates are determined by supply and demand in the bond market. 6. tariff issue: still adhere to the previous view that countries that implement free trade have faster economic growth. Regarding the Trump administration's tariff policy, the Fed does not comment. 7. Housing issue: Fannie Mae and Freddie Mac may depress mortgage rates. Even if interest rates fall, the housing shortage remains. It is not clear whether lower interest rates will lead to lower housing inflation. 8. other highlights: if the Consumer Financial Protection Bureau (CFPB) closes, there will be a gap in consumer compliance protection. A central bank digital currency will never be introduced.