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.
Report to Congress on Defense of Taiwan
English Summary
Taiwan faces an accelerating military threat from China's People's Liberation Army, with U.S. intelligence assessing that China could be capable of invading Taiwan by 2027. Taiwan responded by passing a $24.8 billion, eight-year arms procurement budget in May 2026 and committed to increasing defense spending to 3.3% of GDP, though political divisions resulted in funding 38% below executive proposals. Beyond procurement, Taiwan must address military recruitment and retention challenges, strengthen civil defense preparedness, and protect vulnerable infrastructure—all critical to realizing its defense goals and maintaining cross-Strait stability.
中文摘要
台灣面臨來自中國人民解放軍日益加劇的軍事威脅，美國情報評估指出中國可能在 2027 年前入侵台灣。為應對此挑戰，台灣於 2026 年 5 月通過了價值 248 億美元、為期八年的武器採購預算，並承諾將國防開支提高至 GDP 的 3.3%。然而，由於政治分歧，實際撥款仍低於行政部門的提案，低了 38%。除了採購外，台灣還必須解決軍人招募與留用方面的挑戰，強化民防準備，並保護關鍵基礎設施——這些都是實現國防目標和維持兩岸穩定的關鍵要素。
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