The Fed announced that it would raise 75 basis points, which will accelerate the "shrinkage" from September

The Federal Reserve announced on the 27th that the federal fund interest rate target range raised 75 basis points to 2.25%to 2.5%, which met market expectations. This is the Federal Reserve's second consecutive interest rate hike 75 basis points.

The Federal Reserve issued a statement after a two -day monetary policy meeting that the recent US expenditure and production indicators in the United States have been weak, but the employment growth has grown strongly in recent months, and the unemployment rate has remained low. The inflation rate is still high, reflecting the imbalances related to supply and demand related to the rise in the new crown epidemic, food and energy prices, and wider price pressure. In addition, incidents such as Russia and Ukraine have caused additional upward pressure on inflation and put the global economic pressure.

The statement said that the Fed attaches great importance to the risk of inflation and seek the goal of achieving full employment and 2%of the long -term inflation rate. In order to support these goals, the Federal Reserve decided to adjust the federal fund interest rate target range to between 2.25%and 2.5%, and it is expected that this continuous increase will be appropriate. In addition, the Fed will continue to reduce the size of the balance sheet. The statement emphasizes that the Fed will be firmly committed to pulling inflation back to 2%.

According to the implementation of the monetary policy announced on the day, the Fed will accelerate the "shrinkage" from September, that is, the monthly reduction limit of US Treasury bonds to US $ 60 billion, and increasing institutional bonds and institutional mortgage loan support Securities (MBS) The monthly reduction is reduced to $ 35 billion. At present, the above two reductions are $ 30 billion per month and $ 17.5 billion per month, respectively.

The Federal Reserve President Powell said at a press conference after the currency policy meeting that after the 75 basis points of the interest rate hike, the federal fund interest rate target range was close to the neutral interest rate level. Although inflation data is still on the rise, the economy is likely to be in the period when the data has not fully reflected the tightening effect of the currency policy. He believes that the interest rate hike and "shrinkage" have actually produced the effect.

Powell said that the Federal Reserve may also have a significant interest rate hike at a regular monetary policy meeting in September. The specific amplitude must be determined according to the future economic data, and the pace of interest rate hikes will be gradually slowed down in the future. He emphasized that there is no economic recession in the United States, and he does not think that the United States must experience economic recession, but the possibility of economic soft landing is shrinking, and the first priority of the Federal Reserve is still stable prices.

After Powell delivered a speech, the three major US stock market indexes rose short -term at the end. As of the close of the 27th, the Dow Jones Industrial Average rose 436.05 points, or 1.37%, closed at 32197.59 points; the Nasdaq Composite Index rose 469.85 points, or 4.06%, closed at 12032.42 points; the 500 stock index of the S & P increased by 102.56 points. , Or 2.62%, closed at 4023.61 points.

The US financial media CNBC quoted analysts and stated that after Powell pointed out that the US economy has not yet recessive, investors seem to be encouraged and the US stock index rises across the board. The effect on the "shrinkage", because the "shrinkage" is another mechanism that the Fed used to influence the financial situation. "It will accelerate, the market is expected to raise interest rates at least 50 basis points in September.

(Source: China News Network reporter Wang Fan)

【Edit: Jinxin】

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