Federal Reserve Chairman Jerome Powell recently delivered an important speech on the principles of monetary policy formulation. He clearly stated that when setting interest rate policy, the Federal Reserve will not take into account the government's financing needs. Powell emphasized that the Federal Reserve's top priority is to control inflation and maintain stability in the labor market.

Powell pointed out that incorporating government fiscal needs into monetary policy considerations is not in line with the practices of central banks in developed economies, and such an approach could undermine the credibility of the Federal Reserve. He acknowledged that due to the Federal Reserve's maintenance of high Intrerest Rates to curb inflation, interest expenditures of the U.S. government reached $1.1 trillion last year, significantly increasing the costs of government debt management.

Some believe that lowering interest rates can alleviate the government's financial burden. However, Powell's statements indicate that the Federal Reserve will continue to uphold its independence and focus on achieving its statutory goals without being influenced by political pressure.

This position highlights the importance of central bank independence in macroeconomic management. Although the rising cost of government debt presents challenges, maintaining price stability and a healthy labor market remains the Federal Reserve's top priority. The future direction of the Federal Reserve's policies will continue to be closely monitored by the market.