Federal Reserve Chairman Walsh: Watching market pricing closely without following market pricing actions

On 30 July, Federal Reserve Chairman Walsh explained in a press conference why he would mention that the financial markets, in the absence of central bank policy guidance, had taken into account more tight monetary policy expectations, but that did not mean that the Federal Reserve had to follow the pricing actions of traders and investors. “I am pleased that, in the period between the two meetings, the market did not adjust the pricing because of us, but rather reflected itself in a more tight financial environment.” And he said, “I think this is a useful development.” He added, however: “We do not recognize or support any particular market movement, but I would like to say that we will observe it with great interest.”