Federal Reserve Chairman Walsh explained at the press conference why he mentioned that the financial market has taken into account tighter monetary policy expectations by itself in the absence of central bank policy guidance, but this does not mean that the Federal Reserve must follow the pricing actions of traders and investors. “I am pleased that in the period between the two meetings, the market did not adjust pricing because of us, but rather reflected the tighter financial environment on its own,” Walsh said. He also said, “I think this is a beneficial development.” However, he added, “We don't approve or support any specific market trends, but I would say we will be watching market trends with great interest.”

Federal Reserve Chairman Walsh explained at the press conference why he mentioned that the financial market has taken into account tighter monetary policy expectations by itself in the absence of central bank policy guidance, but this does not mean that the Federal Reserve must follow the pricing actions of traders and investors. “I am pleased that in the period between the two meetings, the market did not adjust pricing because of us, but rather reflected the tighter financial environment on its own,” Walsh said. He also said, “I think this is a beneficial development.” However, he added, “We don't approve or support any specific market trends, but I would say we will be watching market trends with great interest.”