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.
Energy Security: Back to the Future
English Summary
Geopolitical instability and escalating energy demand, particularly from AI, are shifting global energy policy, making security and reliability the primary focus over pure climate goals. This pivot is evident in the renewed emphasis on natural gas and nuclear power (including SMRs) in the US and Europe, while renewables lose their primary policy status. Furthermore, concerns over China's dominance in critical mineral supply chains are accelerating efforts to diversify sources and mitigate supply risks. Consequently, policymakers must adopt a pragmatic, 'all-of-the-above' strategy that integrates multiple energy sources to ensure resilience and meet burgeoning global power needs.
中文摘要
地緣政治不穩定和不斷增長的能源需求，特別是來自人工智慧（AI）的能耗，正在改變全球能源政策，使能源安全和可靠性取代純粹的氣候目標成為主要焦點。這一政策轉向體現在美國和歐洲重新強調天然氣和核能（包括小型模組化反應爐SMRs），而再生能源的政策地位有所下降。此外，對中國在關鍵礦物供應鏈上主導地位的擔憂，正加速推動多元化來源和減輕供應風險的努力。因此，政策制定者必須採取務實的「多源結合」（all-of-the-above）策略，整合多種能源，以確保能源韌性並滿足不斷增長的全球電力需求。
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