Greg Gigi: Federal Reserve Chairman Kevin Walsh's clear policy framework may not necessarily indicate a policy shift

According to Greg Gicchi, head of fixed income and municipal bonds at Nomura, Federal Reserve Chairman Kevin Walsh's speech at the Jackson Hole Conference clarified the Fed's policy framework, with PCE still the preferred inflation indicator, a 2% inflation target that cannot be compromised, and policy rates remaining the primary monetary policy tool. Greg Gizzi stated that Federal Reserve Chairman Kevin Walsh believes it is difficult to describe the overall financial environment as restrictive, and there are no signs of credit and lending activity being suppressed. However, the wording of Federal Reserve Chairman Kevin Walsh's speech echoes the statement made at the press conference and does not necessarily imply that the Fed is about to make a policy shift.