Fed's radical interest rate hike impact international market

Xinhua News Agency, New York, June 15th: The Fed's radical interest rate hike impacts the international market

Xinhua News Agency reporter Liu Yan

Faced with the continuous high inflation, 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 Federal Reserve's maximum rate hike since 1994.

The economic prediction data released by the Federal Reserve's Federal Public Market Committee on the same day showed that the Federal Reserve officials' medium to the Federal Fund interest rate at the end of this year was 3.4%, which was significantly higher than the March forecast of 1.9%.

Under the continuous high inflation, the market has expected the Fed to raise interest rates, which has led to a sharp decline in some global stock markets in recent days, and major currencies such as Japanese yen, pounds and euros have significantly lower the US dollar exchange rate.

According to data released by the US Department of Labor on the 10th, the U.S. consumer price index rose 1%month -on -month, a year -on -year increase of 8.6%, which were higher than market expectations and April data. Maximum value.

Forta Radakzada, a senior analyst of Jiasheng Group, said that there are many reasons for the stock market to sell sharply, but it is mainly attributed to inflation pressure. Excessive inflation made the US -European Bank of the United States and the European Bank of the United States have to tighten the policy to cope with inflation. On the other hand, investors' investment portfolios have been hit hard, further encouraging the selling market.

The Ministry of Finance of Japan, the Bank of Japan, and the Japan Finance Agency jointly issued a statement recently, expressed concern about the recent decline in the exchange rate of the Japanese yen. On the 13th, Nakada Toya, president of the Bank of Japan, warned that the Japanese yen depreciated sharply to increase the uncertainty of the economic prospects.

After many years of super loose monetary policy, the Central Bank of Europe announced on the 9th that it would stop purchasing net assets from July 1st and planned to raise interest rates in July 25 basis points. After that, the yields of government bonds in the southern part of the euro zone have increased significantly.

The market is concerned that with the end of the European Central Bank's end to purchase debt, the national financing cost of the euro zone with heavy debt burden will rise significantly, which may bring the risk of debt crisis.

The European Central Bank Council held a temporary meeting on the current market situation on the 15th. Discussing the response strategy has also attracted the attention of all parties. Analysts believe that the European Central Bank's choice of convening a temporary meeting before the Fed announced the announcement of monetary policy resolutions, which may mean that the European Central Bank is concerned about the influence of the Federal Reserve's sharp interest rate hike to risk assets to a certain extent, which exacerbates the fragmentation of the European sovereign bond market.

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