Federal Reserve announced interest rate hikes

/>

The Federal Reserve announced on the 15th that 75 basis points raised interest rates, raising the federal fund interest rate target range to 1.5%to 1.75%. This is the Maximum interest rate hike since 1994, showing the urgency of controlling inflation.

The Federal Reserve's Federal Public Marketing Committee issued a statement after the two -day monetary policy meeting on the 15th, saying that the inflation rate is still high, reflecting the imbalances, rising energy prices and wider price pressures related to the new crown epidemic. The committee stated that "high attention to inflation risk."

According to a press conference held after the meeting, the Federal Reserve Chairman Powell said that at the monetary policy conference in early May, members of the committee generally believe that if the economic and financial development development meets expectations, the meeting should consider 50 basis points in interest rate hikes. However, in the face of the recent development of inflation data such as unexpectedly rising, the committee believes that the meeting is necessary to make a greater interest rate hike, and at the same time continue to significantly reduce the scale of the balance sheet.

Powell also said that from the current point of view, it is likely to continue to raise interest rates 50 basis or 75 basis points at the next meeting. The committee will make decisions based on future economic data. He said that the 75 -basis points of interest rate hikes are unusual, and it is expected that the interest rate hikes will not occur often.

The quarterly economic forecast released by the Federal Reserve showed that Fed officials were 5.2%of inflation forecasts in the fourth quarter of this year, which was significantly increased from 4.3%in March. At the end of 2023, the medium value of inflation forecast was 2.6%, and the medium value of inflation forecast at the end of 2024 was 2.2%. At the same time, the Federal Reserve officials have a medium to 3.4%of the Federal Fund interest rate at the end of this year, which is significantly higher than the 1.9%of the March forecast; the medium value of the forecast of economic growth in the fourth quarter of this year is 1.7%, which is significantly lower than March. 2.8%.

According to data released by the US Department of Labor on the 10th of this month, 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.

Source: Xinhua News Agency

- END -