Nick Timiraos: Walsh doesn't like “data dependence”, but the old system still dominates

According to Nick Timiraos, a Wall Street Journal correspondent, the market will focus on the change in the July inflation data ring published on Wednesday, as an increasing number of FOMC members say that inflation readings in the coming months will determine whether they believe that the “inflation return to 2 per cent” projection remains achievable without further interest. The recent change in the framework linking policy-sensitive predictions to high-frequency data by the new Federal Reserve Chairman, Walsh, was not in line with that. He stated that he did not see much practical value in the current Fed's “data-dependent” policy. In addition, Nick indicated that part of the Working Group established by Walsh appeared to be intended to help construct a framework to replace the old one. However, it appears that the old framework is still in operation until the new framework is clear。