(Morning News) On Wednesday (July 27), the Federal Reserve announced 75 basis points, and adjusted the federal fund interest rate target range to 2.25%to 2.5%.This is the fourth rate hike this year, and the second consecutive interest rate hike 75 basis points.
Comprehensive Xinhua News Agency and China News Agency reported that the Federal Reserve decision -making agency federal open market committee issued a statement after the two -day monetary policy meeting on the 27th, saying that the inflation rate is still high, reflecting the supply and demand related to the crown disease epidemic situationEquipment, rising energy prices and wider price pressures; Russia -Ukraine conflicts and their related events cause additional upward pressure on inflation.The committee "pays high attention to inflation risk" and will continue to greatly reduce the size of the balance sheet.
The Fed Chairman Powell said at a press conference held after the meeting that in the next few months, the Fed will find evidence of "convincing" inflation and continuously raising interest rates. At the September meeting meeting,It may be appropriate to perform "extraordinary large interest rate hikes" again.
When asked whether the US economy was in a decline, Powell replied that although the US economy has slowed down, the employment market is still strong, and he does not think that the United States has entered the economic recession.But he also admits that the Federal Reserve avoids recession, the path of "soft landing" has narrowed, and it may become narrower.
US financial media CNBC quoted analysts and said 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 used by the Federal Reserve to influence the financial situation."It will accelerate, the market is expected to raise interest rates at least 50 basis points in September.
