The article argues that the Federal Reserve's recent rate hike decision, while justifiable on inflation grounds, highlights a critical lack of an underlying, transparent policy framework. The core problem is that the Fed's decisions appear discretionary, leading to market uncertainty because the committee's judgment, rather than clear data, dictates policy shifts. The author proposes that the Fed adopt a formal monetary policy rule—an algebraic formula linking the target rate to indicators like inflation and unemployment—to replace subjective guidance. Implementing such a rule would provide market predictability, enhance transparency, and shield the Fed from political attacks by making deviations from the standard easily quantifiable.
Compete, Don’t Retreat
English Summary
The report argues that the U.S. must transition from a purely protectionist response to China's automotive dominance toward a proactive strategy of global competition in autonomous, connected, and electric (ACE) vehicles. While current tariffs provide temporary breathing room, the author warns that indefinite isolation risks leaving the U.S. as a technological island of obsolete internal combustion engines while ceding international markets to Chinese firms. To maintain competitiveness, the U.S. should provide conditional financial support to domestic manufacturers, coordinate supply-chain diversification with allies, and manage national security risks through data localization rather than total exclusion. This strategy aims to secure the economic and environmental benefits of the automotive revolution while navigating the geopolitical rivalry with China.
中文摘要
該報告主張，美國必須從單純針對中國汽車主導地位的保護主義應對方式，轉向在自動駕駛、聯網及電動（ACE）車輛領域採取主動的全球競爭策略。雖然現行的關稅提供了暫時的喘息空間，但作者警告，無限期的孤立恐使美國淪為過時內燃機技術的「技術孤島」，並將國際市場拱手讓予中國廠商。為維持競爭力，美國應向國內製造商提供有條件的財務支持、與盟友協調供應鏈多元化，並透過數據在地化而非全面排除來管控國家安全風險。此策略旨在應對與中國地緣政治競爭的同時，確保汽車革命所帶來的經濟與環境效益。
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