Summary of key points from first press conference of Federal Reserve Chairman Powell

1. Reshaping Communication Framework: Discard forward guidance, downplay dot plots. This is the core signal of change in this press conference, with Wash substantively advancing his philosophy of "say less, think more". Formally abandon forward guidance: Wash clearly stated that the Fed has abandoned forward guidance, acknowledging that this tool is no longer suitable for the current situation. He cannot provide any forward guidance on specific future actions. Dot plots ineffective: He believes that providing dot plots is of no help in implementing policies, and the FOMC does not consider itself constrained by interest rate forecasts. He also did not provide dot plot forecasts today. Adjusting press conferences: He believes that press conferences are a useful means of communication, but making certain adjustments to them in the future will be valuable. Expectations for a new communication framework: It would not be surprising if a new version of the communication framework is disclosed before the end of the year. 2. Inflation Targeting and Response: Adhere to the 2% target, guard against second-round effects. Adhere to the 2% target: The 2% inflation target is the Fed's long-term goal, and as long as it is not achieved, there is no reason to reassess the target. The Fed has committed to addressing the five-year inflation deviation problem. Inflation attribution and response: The Fed cannot have a significant impact on specific prices, and its core work is to ensure that there is no "second-round price effect". Data source deficiencies: He pointed out that most of the data the Fed relies on currently comes from outdated survey methods, which will need reform in the future. 3. Institutional Reform: Establishment of five special working groups. To address current challenges, Wash announced the appointment of five special working groups in the monetary policy field, expecting them to complete most of their work by the end of the year: Communication working group: Provide recommendations around economic outlook adjustments. Balance sheet working group: Evaluate appropriate reserve responsibilities. Data source working group: Address data lag issues. Productivity working group: Specifically review the impact of artificial intelligence on productivity. Employment working group: Focus on labor market dynamics. 4. Independence and External Relations. Defending independence: Wash emphasized that the Fed will never transfer decision-making power to any external party. Communication with the government: He revealed that he has had breakfast three times with U.S. Treasury Secretary Bennet so far. Internal governance: He disclosed that he has met with the Fed Inspector General, who will release a report this summer on the renovation of the Fed building. Market pricing: He emphasized that real-time market reactions to future data is the best indicator, and market prices themselves may be the most important reference information.