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.
Trump’s State of the Union Addresses Domestic Policy
English Summary
President Trump’s State of the Union address prioritized domestic economic issues and immigration while framing his 'peace through strength' doctrine as a success in stabilizing global conflicts. He defended the continuation of tariffs despite judicial setbacks and highlighted the recognition of a new interim government in Venezuela as a major shift in Western Hemisphere policy. These developments suggest an administration focused on transactional diplomacy and protectionist economic measures, emphasizing increased burden-sharing from both international allies and domestic technology firms.
中文摘要
特朗普總統於國情咨文中優先處理國內經濟議題與移民事務，並將其「以實力求和平」之方針形塑為穩定全球衝突的成功範式。儘管面臨司法挫折，他仍為維持關稅政策辯護，並強調承認委內瑞拉新臨時政府為西半球政策的重大轉折。綜觀上述進展，該政府顯現出側重交易型外交與保護主義經濟手段的趨勢，並強調國際盟友及國內科技企業應增加責任分擔。
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