The global market never sleeps!"Historic rate hike" 75 basis points!The Fed for the first time in 28 years!What does it mean?
For the first time since 1994!Fed announces rate hike by 75 basis points
On the 15th local time, in the early morning of the 16th Beijing time, the Federal Reserve announced the statement of the June Federal Open Market Committee (FOMC) meeting.The Fed raised its target range for the federal funds rate by 75 basis points to between 1.5% and 1.75%, according to the statement.This is the first time since 1994 that the rate hike has reached 75 basis points, highlighting the urgency of the Fed's aggressive monetary tightening.
The outside world is worried that the Fed's aggressive interest rate hikes may increase the risk of a U.S. recession
Analysts believe that the U.S. CPI data in May unexpectedly broke the table, and the PPI data in May continued to hover at a historically high level, so that the outside world cannot see any signs that the U.S. inflation situation is out of a "dangerous situation".According to reports from mainstream financial media in the United States, Fed officials admitted that measures to curb inflation by raising interest rates will lead to higher unemployment in the United States.Inflationary pressures remain high, and the Fed has taken a more aggressive approach to curb inflation, fueling concerns that the U.S. economy is approaching a recession.According to a new survey by the Financial Times this month, nearly 70% of the economists surveyed believe that the U.S. economy will fall into recession in 2023, and some economists say that "the recession will be this year".
Many investment banks expect the Fed to continue to maintain aggressive rate hike path
At present, a number of Wall Street investment banks, including Goldman Sachs, expect the Fed to raise interest rates by another 75 basis points in July, following a sharp 75 basis point hike in June.By September, the pace of rate hikes may be slightly less aggressive, with a 50 basis point hike instead.
Powell: 75bps rate hikes won't be the norm
At 2:30 p.m. local time on the 15th and 2:30 a.m. Beijing time on the 16th, Federal Reserve Chairman Powell said at a press conference held after this interest rate meeting, "Today's 75 basis point rate hike is extraordinary. But interest rate hikes of this magnitude will not become the norm." Powell said that from the current point of view, the Fed is most likely to raise interest rates by 50 basis points or 75 basis points in July.He said the Fed will take a modest rate hike based on future economic data.
Fed slashes U.S. economic growth forecast for this year
According to the latest economic outlook forecast released by the Federal Reserve on the 15th local time, the US economy is expected to grow by 1.7% in 2022, down 1.1 percentage points from the March forecast.According to the Fed's latest forecast, the U.S. personal consumption expenditures (PCE) price index is expected to increase by 5.2% year-on-year this year, higher than the previous forecast of 4.3%. The core PCE price index after excluding food and energy prices is expected to increase by 4.3% year-on-year. This is 0.2 percentage points higher than the previous forecast.The PCE price index is an inflation indicator closely watched by the Fed.
【Editor: Shao Wanyun】
