Home  Contact Us
  Follow Us On:
 
Search:
Advertising Advertising Free Newsletter Free E-Newsletter
NEWS

Fed rolls out biggest rate hike since 1994
Published on: 2022-06-16
Share to
User Rating: / 0
PoorBest 

The Federal Reserve on Wednesday approved its largest interest rate increase in more than a quarter of a century to stem a surge in inflation that US central bank officials acknowledged may be eroding public trust in their power, and being driven by events seen increasingly out of their hands.
 

The widely expected move raised the target federal funds rate by three-quarters of a percentage point to a range of between 1.5 percent and 1.75 percent, still comparatively low by historic standards.
 

But the Fed's hawkish commitment to controlling inflation has already touched off a broad tightening of credit conditions being felt in US housing and stock markets, and likely to slow demand throughout the economy – the Fed's intent.
 

Officials also envision steady rate increases through the rest of this year, perhaps including additional 75-basis-point hikes, with a federal funds rate at 3.4 percent at year's end. That would be the highest level since January 2008 and enough, Fed projections show, to slow the economy markedly in coming months and lead to a rise in unemployment.
 

"We don't seek to put people out of work," Fed Chair Jerome Powell said at a news conference after the end of the Fed's latest two-day policy meeting, adding that the central bank was "not trying to induce a recession."
 

Yet the Fed chief's remarks were among his most sobering yet about the challenge he and his fellow policymakers face in lowering inflation from its current 40-year high, to a level closer to its 2 percent target, without a sharp slowdown in economic growth or a steep rise in unemployment.
 

"Our objective really is to bring inflation down to 2 percent while the labor market remains strong ... What's becoming more clear is that many factors that we don't control are going to play a very significant role in deciding whether that's possible or not," Powell said.
 

"There is a path for us to get there ... It is not getting easier. It is getting more challenging," he told reporters, noting that the rate hikes announced last month and in March so far had not only failed to slow inflation, but allowed it to continue accelerating to a level that recent data indicates have begun to influence public attitudes in a way that could make the Fed's job even harder.
 

美联储加息75基点创28年来最大增幅

6月15日周三,美联储会后宣布,将政策利率联邦基金利率的目标区间从0.75%至1.00%升至1.50%至1.75%。这是沃尔克执掌美联储时1994年11月以来联储最大的单次加息幅度,也是逾二十七年来联储首度一次加息75个基点。
 

最近市场已强烈预计美联储将有如此幅度加息。芝商所(CME)的“美联储观察工具”显示,周二美国联邦基金利率期货交易市场预计,6月美联储加息75个基点的几率达89%,一周前预计的几率只有3.9%。

Comments (0)Add Comment

Write comment

security code
Write the displayed characters


busy
    Subscription    |     Advertising    |     Contact Us    |
Address: Magnetic Plaza, Building A4, 6th Floor, Binshui Xi Dao.
Nankai District. 300381 TIANJIN. PR CHINA
Tel: +86 22 23917700
E-mail: webmaster@businesstianjin.com
Copyright 2022 BusinessTianjin.com. All rights reserved.