This interest rate rate is likely to be just the beginning, the Federal ReserveIt is disclosed that "the continuous rise in the federal fund target interest rate range will be appropriate." Powell promised to "flexibly respond to".
The Fed said that it will be allowed to shrink the US $ 8.9 trillion balance sheet of US $ 8.9 trillion from a certain meeting.
According to Bloomberg, the Fed's Open Marketing Committee (FOMC) uses 8 votes to agree to the voting results of 1 vote.The resolution was the first interest rate hike for the Federal Reserve since 2018.Only San Louis Federal Reserve Chief James Bullard held different opinions. He suggested that 50 basis points in raising interest rates. This is the first time since September 2020 has voted against it.
Sweet, director of Moody's Monetary policy research department, said: "This will be a very aggressive tightening cycle. I don’t know if the Fed can make the economy soft.Pay attention.
Powell also said: "The committee is keenly aware that the price must be restored, we are determined to use tools to do this."After the announcement of the economy is sufficient to withstand the tightening of monetary policy, the S & P 500 Index regrets the rise and closes by 2.2%.
Although the risk of economic growth has risen, in the face of the highest inflation rate in 40 yearsOn Wednesday (March 16), the Bureau decided to raise interest rate hikes 25 basis points, and hinted that the remaining six meetings will increase interest rates every time or or in the sixth meeting this year.Very powerful and fully capable of dealing with the tightening of monetary policy.We pay attention to the risk of inflation and inflation expectations."
In the dot plot released by the Federal Reserve (DOT PLOT), officials estimate the median value of the benchmark interest rate to about 1.9 % by the end of 2022, which is consistent with the trader's expectations, but higher than the Federal Reserve's previous expectations.
Their estimated median interest rate at the end of 2023 is 2.8%. This is the last estimated year they give. Russia invaded Ukraine and accompanied by China's new city sealing measures to make the global economic pressure under pressure, This time estimates may add more uncertainty than in the past.
He said, if necessary, the Fed may accelerate the tightening policy.
In the new economic forecastThe Fed said that the inflation rate will be significantly higher than the previous forecast this year, reaching 4.3%, but it will drop to 2.3%in 2024. The economic growth forecast in 2022 is reduced from 4%to 2.8%. The unemployment prediction is basically the same as before./P>
FOMC said in a statement: "Russia's invasion of Ukraine is causing huge manpower and economic pain, and the impact on the US economy is highly uncertain, but Russia's invasion and other related events may bring additional inflation in the short term to inflation.Upward pressure and economic activities."
