Internal divisions within the Federal Reserve over the future path of monetary policy have intensified, with multiple officials supporting replacing the current precise 2% inflation target with an inflation target range. What is your view on this?

Essentially, this amounts to abandoning the 2% inflation target and relaxing constraints on controlling inflation levels. Put bluntly, it signals a complete surrender—intentionally allowing inflation to remain elevated. After all, persistently high inflation stems from many factors: supply-chain disruptions following the pandemic, the Russia-Ukraine war and worsening Middle East tensions over the past two years, plus Trump’s new tariff policies—all contributing to shrinking global trade. Supply-side prospects are dimming further in the coming years. Under these circumstances, monetary policy alone cannot fully rein in inflation. Conversely, if the economy slows, GDP growth decelerates, and unemployment surges, the Federal Reserve and the U.S. government will face even more difficult challenges. Therefore, temporarily sacrificing the inflation target to prioritize economic stability and employment has become a consensus among the current U.S. administration and the pro-administration faction within the Fed. Even from Powell’s perspective, confronted with today’s complex situation, he must acknowledge that no perfect solution exists—any decision carries risks; the key lies in whether those risks remain manageable.

Hengjia Daily | Thursday, September 17, 2026

15. Eighteen satellites launched into orbit over two days: Qianfan Constellation network expands to 256 satellites; year-end target stands at 324. According to IT Home’s report on September 17, 2026, Hengxin Satellite successfully launched 10 satellites on September 15 and another 8 on September 16, bringing the total number of satellites in the Qianfan Constellation to 256. Per official plans, the constellation aims to deploy 324 satellites by end-2026, thereby achieving initial commercial satellite internet service capabilities across key global regions. This means 68 additional satellites still need deployment by year-end, requiring continued high-frequency batch launches. Official roadmaps indicate that Phase I of the 'Qianfan Constellation' will deploy 648 satellites to provide regional coverage; Phase II will add another 648 satellites for full global coverage (totaling 1,296); and Phase III will comprise over 15,000 satellites delivering diversified integrated services and enabling a smooth evolution toward 6G standards. (Source: IT Home, September 17, 2026) 16. Yu Liang, former Chairman of the Board of Directors of Vanke, placed under consumption restrictions; enforcement amount exceeds RMB 4.98 million. According to a report by Lianhe Zaobao on September 16, citing Qichacha data, eight months after retirement, China’s real estate giant Vanke Enterprise Co., Ltd. and its former Chairman of the Board of Directors, Yu Liang, received a newly issued consumption restriction order. The enforcement court is the Changsha Intermediate People’s Court in Hunan Province, with an enforcement amount of RMB 4.98 million (approximately SGD 940,000); case number: (2026) Xiang 01 Zhi 646. The consumption restriction order stipulates that the被执行人 (enforced party) may not travel by airplane or soft-sleeper train compartments, nor by first-class or higher seats on high-speed rail or bullet trains; nor may they stay at star-rated hotels, purchase real estate or non-essential vehicles, or engage in high-end tourism and other luxury consumption activities. Vanke announced on January 8 that Yu Liang had stepped down from his positions as director and executive vice president upon reaching retirement age, concluding a 36-year tenure at the company. (Source: Lianhe Zaobao, September 16, 2026) [International] 1. [Analysis] For the first time since 2023, the Federal Reserve raised interest rates by 25 basis points—to a target range of 3.75%–4%. Trump called for rates to fall to 1% or lower. According to Lianhe Zaobao’s report on September 17, the Federal Open Market Committee (FOMC) unanimously voted on September 16 to raise the federal funds rate target range by 25 basis points, to 3.75%–4%, marking the Fed’s first rate hike since 2023. Fed Chair Kevin Warsh emphasized the necessity of curbing persistently 'too-high' inflation, calling the move 'significant' yet unavoidable. The Summary of Economic Projections indicated that most policymakers expect at least one additional rate hike before year-end. Trump subsequently posted on Truth Social demanding U.S. interest rates be cut 'to 1% or lower' and urging immediate easing. Trump attributed rising prices to U.S. military action against Iran, tariff policies, and the AI boom. (Source: Lianhe Zaobao, September 17, 2026) Analysis: The signaling effect of this policy shift far outweighs the 25-basis-point hike itself. For the past two years, markets grew accustomed to 'rate-cut expectations,' only for the Fed to reverse course and hike instead—clearly declaring that 'inflation control' now takes precedence over 'growth stabilization and market support.' Implications for global assets: dollar-denominated financing costs will remain elevated, sustaining capital outflows from emerging markets and import-driven economies’ exposure to imported inflation.

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