The US Federal Reserve (Fed) raised interest rates by 1 yard after the meeting on Wednesday, as expected by the market, bringing interest rates to between 4.75% and 5%, the highest since September 2007.


Signaling only one more rate hike

Highlights of Fed Chairman Powell's Talk

[Compilation of Lu Yongshan/Comprehensive Report] After the meeting on Wednesday, the US Federal Reserve (Fed) raised interest rates by one yard (0.25 percentage points) as expected by the market, bringing the interest rate to four.

Between 75% and 5%, the highest since September 2007, and hinted that there will only be one more interest rate hike after that, highlighting the Fed's cautious attitude towards the recent banking crisis; however, Fed Chairman Powell said after the meeting The press conference stated that since inflation remains high, no interest rate cut will be made this year.

The Federal Open Market Operations Committee (FOMC) stated in a statement after the meeting: "Officials will closely monitor the incoming information to assess the impact on monetary policy. Officials expect that some additional tightening is appropriate to make the monetary policy stance sufficiently restrained. sex, and bring inflation back to two percent over time.”

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Powell emphasized that the battle against inflation is not over yet, and there is still a long way to go to get the inflation rate down to 2%, and it may be bumpy. Inflation has eased since the middle of last year, but recent economic data Strong, indicating that inflationary pressures remain high; and said that cutting interest rates this year is not the Fed's basic forecast, in order to curb inflation, it may still raise interest rates further if necessary.

Powell admitted that in view of the recent banking crisis, the FOMC considered pausing interest rate hikes during the meeting, but finally reached a consensus on raising interest rates due to strong inflation data and the labor market; "We are committed to restoring price stability, and all the evidence shows that , the people have confidence that we will do this, and it is important that we maintain that confidence with our actions and words."

Banking system not strong enough to suspend rate hikes

Powell said the banking system is sound and resilient, and that while the recent crisis could tighten credit conditions for households and businesses, affecting economic activity, it is too early to tell how monetary policy should respond ; Fed will pay close attention to the upcoming economic data, but also assess the impact of tightening credit conditions on economic activity, the job market and inflation, in order to provide information for decision-making.

The FOMC's latest economic forecasts include that the gross domestic product (GDP) of the United States this year will increase by ○.

5% revised down to ○.

Four percent, the unemployment rate by four.

Six percent lowered to four.

Five percent, personal consumption expenditures price index (PCE) by three.

One percent raised to three.


The latest interest rate dot plot shows that 10 of the 18 policymakers predict that the terminal interest rate will reach 5.5%.

One percent, the same as the forecast in December last year, means that most officials estimate that the Fed will only raise interest rates once more this year; inspired by this, U.S. stocks opened sharply.

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