The Federal Reserve ’s interest rate hike is expected to hear the heating up

On June 14, in Washington, USA, a man walked from a food supermarket under a shopping bag. Xinhua News Agency (Photo by Shen Ting)

Xinhua News Agency, Washington, June 14 (Reporter Xiong Maoling) A series of inflation data released in recent days shows that American inflation has not significantly slowed down. As the Federal Reserve Commission held a monetary policy meeting from June 14th to 15th, the market's expected heating up the 75 -basis point of interest rate hikes.

The Fed observation tools of the Chicago Commodity Exchange showed that on the 14th, traders expected the Federal Reserve to raise interest rates at 75 basis points at the meeting this week, reaching 96.7%, while a month ago, the probability was only 13.6%. After the Federal Reserve raised interest rate hikes in early May of May, Fed Chairman Powell has hinted that 50 basis points may be raised in the next few meetings.

Fed officials have entered the silent period before the meeting on June 4, and after this, a series of inflation data beyond expected. According to data released by the US Department of Labor on the 10th, the US Consumer Price Index (CPI) increased by 1%month -on -month, an increase of 8.6%year -on -year, and a year -on -year increase of more than 8%for three consecutive months. On the 13th, a survey issued by the Federal Reserve Bank of New York showed that consumers' expectations for inflation in the next 12 months rose to 6.6%in May, higher than 6.3%in April, reaching the highest level in 2013. According to data released by the Ministry of Labor on the 14th, the May producer price index (PPI) climbed 10.8%year -on -year.

On June 14, in Washington, USA, a woman walked out of a food supermarket with a shopping bag. Xinhua News Agency (Photo by Shen Ting)

Economist Destmond Rachman, an economist of the American Institute of Enterprise Research, told Xinhua News Agency that it is very likely to raise interest rates at 75 basis points. The inflation data is higher than expected, prompting to consider 75 basis points to raise interest rates to control inflation. He believes that the Fed seems to have stated to the main media through some channels to show the direction of the meeting, so as not to be caught off guard at all. The Federal Reserve ’s 75 basis points were traced back to 1994.

The "Wall Street Journal" reported on the 13th that the "Federal Reserve may consider 75 basis points this week" report, and American Consumer News and Business Channel (CNBC) also released relevant reports on the same day. Later that day, the well -known investment bank Morgan Chase and Goldman Sachs economists said in a report to customers that the Fed is expected to raise interest rates of 75 basis points.

On June 14, in Washington, USA, a woman walked out of a food supermarket with a shopping bag. Xinhua News Agency (Photo by Shen Ting)

Wells Fargo Securities Economist Jei Byson and Michael Pogley raised interest rate hike expectations in an analysis report on the 14th. The report said that before June 10, they were the same as universal consensus and believed that the Fed would raise interest rates 50 basis points on the 15th. But in May, the inflation data that was higher than expected allowed them to raise interest rates to 75 basis points. The report also predicts that the median federal fund target interest rate that Federal Reserve officials will participate in the prediction will rise to 3.375%at the end of this year.

[Editor in charge: Qiu Lifang]

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