Federal Reserve Chairman Kevin Walsh: Raising interest rates by 25 basis points, steady expansion of economic activity

Federal Reserve Chairman Kevin Walsh announced that the Federal Open Market Committee has decided to raise interest rates by 25 basis points and stated that inflation remains high, but economic activity is expanding at a steady pace, with key economic indicators improving in recent months. Federal Reserve Chairman Kevin Walsh stated that the decision to raise interest rates was made against the backdrop of a seemingly strengthening economy, while also noting that financial conditions are not restrictive, a view widely accepted within the FOMC. AI interpretation: This interest rate hike decision directly reflects the Federal Reserve's severe assessment of the current risk of economic overheating. The interest rate hike aims to curb inflation stickiness and prevent economic expansion from getting out of control by tightening monetary policy. The decision-making level has explicitly denied the restrictive nature of the financial environment, indicating that future policies will maintain a tough stance to suppress prices. This measure completely shattered the market's illusion of loose policies and strengthened the policy tone of a long-term high interest rate environment.