U.S. Raise interest rate hikes, Federal Reserve Chairman: Even if it leads to economic recession, inflation must be reduced

Jimu Journalist Song Qingying

Intern Yang Xingnan

In order to suppress the inflation that could not live high, after a sharp interest rate hike in June, the Federal Reserve announced the interest rate hike again on July 27 local time. This is the first time in the Fed's modern history of 75 basis points.

According to the Associated Press, on July 27th local time, after the two -day monetary policy meeting, the Fed announced that the benchmark interest rate was raised by 75 basis points, and the key interest rates increased to 2.25%to 2.5%after interest rate hikes.

U.S. President of the United States Georim Powell (picture source: Reuters)

At the press conference after the meeting, the Federal Reserve Chairman Jerom Powell pointed out that the U.S. inflation rate is at a 40 -year high, and the Fed is overcoming long -term high inflation.

According to the latest data from the US Labor Statistics, the US consumer price index soared to a new high after the epidemic in June, up 9.1%year -on -year. Americans are much less savings than year ago, and many American family funds are tight. In May, Americans' savings accounted for only 5.4%of disposable personal income, lower than 12.4%of the same period last year.

US price rise (source: BBC)

When asked if the United States was in economic recession, Powell said: "I don't think the United States is currently in a decline." He said that the Fed's interest rate hike has achieved some success in slowing economic slowdown and alleviating inflation pressure.

Powell acknowledged that some economies of the United States are slowing down, but saying that despite the risk, the Fed may continue to raise interest rates in the next few months. He emphasized: "Even if it leads to economic recession, it is important to reduce inflation."

According to the BBC report, recent reports show that American consumer confidence has decreased, the real estate market has slowed down, the number of initial invoices has risen, and commercial activities have contracted for the first time since 2020. Many people expect that official data this week will show that the US economy has shrunk in the second quarter.

In June this year, the Federal Reserve raised 75 basis points for the first time in 28 years. It is reported that in the past 30 years, the Fed's benchmark interest rate adjustment is generally 25 basis points. However, the surge of inflation forced the Federal Reserve to implement a three -fold interest rate hike in June. This is the first time the Fed raised 75 basis points since 1994.

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