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The United States increases interest rates, Baidu Finance grasps the trend of MT4.MT5

发布时间：2022-08-25 浏览：122

In order to curb stubbornly high inflation, following the sharp interest rate hike in June, the Federal Reserve announced another interest rate hike on July 27, local time.

 

According to the Associated Press, on July 27, local time, the Federal Reserve announced to raise its benchmark interest rate by 75 basis points after a two-day monetary policy meeting.

At a news conference after the meeting, Fed Chairman Jerome Powell pointed out that U.S. inflation is at a 40-year high and the Fed is overcoming chronically high inflation.

 

The U.S. consumer price index surged to a new post-pandemic high in June, rising 9.1% from a year earlier, according to the latest data from the U.S. Bureau of Labor Statistics. Americans are saving far less than they were a year ago, leaving many American households cash-strapped. Americans saved just 5.4% of disposable personal income in May, down from 12.4% a year earlier.

Asked if the U.S. is in a recession, Powell said: "I don't think the U.S. is in a recession right now." He said the Fed's rate hikes had already had some success in slowing the slowdown and easing inflationary pressures.

 

Powell acknowledged that parts of the U.S. economy are slowing, but said that despite the risks, the Fed is likely to continue raising interest rates in the coming months, stressing: "Even if it leads to a recession, it's important to reduce inflation."

 

According to the BBC, recent reports showed a decline in US consumer confidence, a slowing housing market, a rise in jobless claims and business activity contracting for the first time since 2020. Many expect official data this week to show the U.S. economy shrank for the second straight quarter.

 

In June, the Fed raised interest rates by 75 basis points for the first time in 28 years. It is reported that in the past 30 years, the adjustment rate of the Fed's benchmark interest rate has generally been 25 basis points. But soaring inflation forced the Fed to triple interest rates in June, the first 75 basis point hike since 1994.