The Federal Reserve said that high inflation will cause people who cannot afford the necessities of life to fall into a huge dilemma. Stable price is a necessary condition for maintaining a strong labor market.Stablize.This is the strongest statement of the Federal Reserve to this day, reiterating to continue to raise interest rates and tighten monetary policy.
(Washington Composite Electric) submitted a semi -annual report to Congress by the Federal Reserve, promising to take all necessary measures to control prices and inhibit the highest inflation rate in 40 years.
The Federal Reserve pointed out in a report submitted on Friday that high inflation will cause people who cannot afford the necessities of life to fall into a huge dilemma, and stable prices are necessary conditions for maintaining a strong labor market.
Although the report does not explain the meaning of "unconditional", this is the most powerful statement of the Federal Reserve to this day, reiterating that it will continue to raise interest rates and tighten monetary policy to solve the most important issue facing the economy.
Last Wednesday, the Federal Reserve had a 75 -basis point of interest rate hikes to suppress the upward trend, which was the largest interest rate hike in the past 30 years.The Fed will not rule out 75 basis points to raise interest rates next month.Federal Reserve Director Voller said the day before yesterday to support a significant interest rate hike next month.
Analysis: The monetary policy of various countries is sharply tightened or caused economic recession
Analysis states that central banks of various countries are busy responding to unexpected inflation and the implementation of tightening monetary policy. Its degree of radicals may be the highest since the 1980s, which may cause economic recession and impact the financial market.
Fed Chairman Powell also reiterated its determination to fight inflation last Friday, and emphasized that the Fed is committed to restoring the inflation rate to the target level of 2%.
Powell said at the Federal Reserve conference held in Washington that day: "The Fed resolutely implement the policy goal of stable price stability, which also helps to broaden the confidence of the market for the US dollar as a reserve currency.Dual goals also depend on the stability of the financial market, and encourage the international community to continue to hold and use the US dollar. "
60%of international large enterprise executives are expected to decline within 12 to 18 months
Powell will go to Parliament Mountain for two consecutive days to attend the Senate Bank, Housing and Urban Affairs Committee and the House of Representatives Financial Services Committee for two consecutive days.Analysts generally predict that Powell will reiterate at the hearing that the Fed will adopt a more radical currency tightening policy until the United States' inflation is controlled.
Since this time, the critical sounds that have responded to slowly have become more significant for Powell and the Federal Reserve in the process of soaring prices, and even threatened the Democratic Party's election in the United States in November.Once the Democratic Party loses its current weak advantage in the two hospitals, it may further threaten the various policy agenda of the US President Biden in the future.
On the other hand, the latest survey launched by 750 enterprise executives by the CONFERENCE BOARD shows that more than 60%EssenceAnother 15%of the respondents believe that the area where the business is located is already in a decline.In the survey at the end of last year, the ratio of the risk of recession was 22%.
The survey was conducted before the Federal Reserve's meeting last Wednesday. As a result, the business leaders' views on economic prospects are rapidly deteriorating.Some corporate executives say that the rise in energy prices is particularly worrying, and rising transportation costs are leading to rising commodity production costs.
The Federation predicts that 2.9%and 2.3%of the global economy will be achieved this year and next year, but it is believed that "extreme events together, even a few small disadvantages" may affect growth and cause economic recession.
