00:00The Fed to sing on the latest update we can see is all of this the Federal Reserve held interest
00:07rate study on Wednesday, a choice that may intensify questions about how U.S. Central Bank chief Kevin Walsh will
00:14deliver on his commitment to bring inflation back down to 2% target.
00:18Walsh, who took over ahead of the Fed in May, has said he has no tolerance for inflation that has
00:24been running above the central bank's target for more than five years.
00:30Up until last month, the inflation was accelerating as the war in the Middle East pushed up global fuel and
00:36food prices and investment in data centers and other spending tied to artificial intelligence drove up demand.
00:42Not one of my FOMC colleagues is under any illusion.
00:47We have begun a new chapter and we understand that the five plus years of inflation above target cannot be
00:55cured in nine weeks or by a single month of modest price decreases.
01:03This Fed will not waver.
01:05Our credibility rests on performing our duties and delivering on our responsibilities.
01:12Americans are right to expect that because our nation's prosperity depends on it.
01:19After all, the central bank need not always and everywhere be the center of attention.
01:25I understand the desire for rolling forecasts and commentary from this committee.
01:31But for our part, we need to observe market reaction to developments, direct and unfiltered.
01:39I want to stress, of course, that decisions by this committee matter a great deal.
01:45And where necessary and appropriate, we will not hesitate to act.
01:52Financial markets ahead of this week's meeting had priced in about one in three chance of the rate hike.
01:58And absent such a move, at this week's meeting nearly a 100% chance of an increase in September.
02:05By then, Fed policymakers will have in hand two more monthly readings on inflation at the jobs market,
02:12giving them a better picture of whether the cooling price pressures evidenced last month have continued.
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