Highlights of J.Powell's monetary policy testimony

1. Interest rate outlook: Reiterating that there is no need to rush to adjust interest rates. If the economy remains strong and inflation does not get close to 2%, policy can remain prudent for longer. If the labor market weakens unexpectedly or inflation falls more than expected, policy could be loosened modestly.

2. Inflation situation: Long-term inflation expectations appear solid. Inflation is close to the 2% target, but still a bit high. Focus on achieving your dual goals. The Fed's framework review will not focus on inflation targeting.

3. Labor market: Unemployment rate remains low and stable. The labor market situation has cooled after the previous overheating period and remains solid, not becoming a source of inflationary pressure. The labor market situation in general remains balanced.

4. Banking supervision: Commit to adjusting banking supervision activities, avoiding creating excessive burdens for banks. It is necessary to reconsider the "non-bank" issue. Committed to the ultimate goal of completing Basel III.

5. Long-term interest rates: The Federal Reserve cannot control long-term interest rates, and the reason long-term interest rates are high has nothing to do with Federal Reserve policy. Long-term interest rates are determined by supply and demand in the bond market.

6. Tariff issue: I still maintain my previous view that countries implementing free trade will have faster economic growth. The Federal Reserve declined to comment on the Trump administration's tariff policy.

7. Housing issues: Fannie Mae and Freddie Mac may lower mortgage rates. Even as interest rates fall, the housing shortage continues. It is unclear whether interest rate cuts will lead to a reduction in housing inflation.

8. Other highlights: If the Consumer Financial Protection Bureau (CFPB) is shut down, there will be a gap in consumer compliance protections. There is no possibility of launching a central bank digital currency.