Federal Reserve Chairman Kevin Walsh said in his speech at the Jackson Hole annual meeting in Wyoming on Friday that inflation is the biggest problem facing the Federal Reserve, but investors need to judge for themselves when Federal Reserve officials will intervene. At this important conference bringing together central bank governors, finance ministers, and policy makers from around the world, Walsh pointed out that the US economy is in a “full employment” state, yet the inflation data is “increasingly worrying.” Over the past 20 years, the current chairman of the Federal Reserve has been sending signals about interest rate trends through keynote speeches at the annual economic conference held by the Federal Reserve Bank of Kansas City. On Friday, Walsh broke with this tradition and further implemented one of the major reforms he implemented at the Federal Reserve: reducing the transmission of information about the Fed's future policy plans to the market and the public. This has also forced traders to adapt to the Bank of America's new operating model; at the same time, multiple global factors such as government debt, the rise of artificial intelligence, and war-fueled inflation continue to stir up financial markets. Although Walsh gave no sign of interest rate trends or what circumstances would prompt him to act, his view of inflation as a greater risk is itself quite enlightening. However, this may not be enough to provide sufficient clear guidance to the market.

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