BlockBeats news, on July 30, Federal Reserve Chair Walsh stated that since the June meeting, financial markets have already absorbed most of the Fed's tightening policy effects, and therefore he does not agree with characterizing the decision to hold rates steady as a "pause."
Wash said: "I wouldn't call today's decision a 'pause' in any sense. If you must label it a 'pause,' then the performance of financial markets clearly indicates the opposite."
Since the Federal Reserve's mid-June policy meeting, the yields on U.S. 2-year and 10-year Treasuries have each risen by approximately 20 basis points. Wash noted that during this period, financial markets did not "pause" their adjustments but continuously repriced in response to inflation data and economic growth performance: on one hand, inflation data influenced market expectations; on the other hand, robust economic growth pushed both nominal and real interest rates higher.
He said: "It's true that the Federal Reserve did not explicitly adjust the policy rate today. But I believe this is just the beginning, not the end, of the entire policy story." (Jin10)