The Fed keeps interest rates unchanged. The bitmap shows that it is expected to raise interest rates three times next year.
The Federal Open Market Committee (FOMC) announced the latest interest rate resolution on Wednesday local time, keeping the benchmark interest rate unchanged at 0%-0.25%, the excess reserve interest rate (excess reserve interest rate) unchanged at 0. 15%, and the overnight reverse repo rate unchanged at 0.05%, in line with market expectations.
It is reported that the Federal Reserve announced the reduction of monthly bond purchases for the first time in June 5438+065438+ 10, and announced on June 5438+05 this month that it would accelerate the reduction. Starting from June 5438+ 10 tomorrow, the Fed will reduce the purchase of treasury bonds worth $20 billion and mortgage-backed securities worth $10 billion.
The Fed's bitmap shows that all members expect the Fed to raise interest rates in 2022, specifically three times in 2022 and 2023. Committee members are tough on policy measures and are firmly inclined to raise interest rates. Among 18 FOMC members, 12 members think that interest rates will be raised at least three times next year, and six members expect to raise interest rates less than three times next year. No one thinks that the interest rate will remain near zero next year.
Image source: Federal Reserve
The change of policy stance is also reflected in the expectation of economic data. Members of the Federal Reserve adjusted the expected range of US real GDP growth in 20021year to 5.3%-5.8%, further down from 5.5%-6.3% in September. The unemployment rate is expected to be 4.0-4.4%, which is also lower than the previous value of 4.5-5.1%. PCE core price index is expected to be 4.4%-4.5%, higher than 3.5%-4.2% in September. In addition, members' inflation expectation range for 2022 is also raised to 2.4%-3.2%, which continues to exceed the policy target of 2%.
Image source: Federal Reserve
Diane Swonk, chief economist of Grant Thornton Capital, explained that the resolution statement of May 438+February in June showed that FOMC was more "panic" at present, which was the first time we saw the Fed chasing inflation in recent decades.
CCTV News quoted data released by the US Department of Labor in February 10 local time, showing that the consumer price index (CPI) in the United States rose by 0.8% in June, up by 6.8% year-on-year, reaching the highest level since June 1982, and the highest inflation rate that most Americans have seen.
At the news conference after Wednesday's interest rate decision, Federal Reserve Chairman Powell said that the high inflation in the United States forced the Federal Reserve to speed up the reduction of its bond purchases. The Fed will use tools to support the labor market and prevent high inflation from becoming entrenched.
Powell said that the recent increase in cases of COVID-19 in the United States and the mutant strain of Omicron pose risks to the American economy. However, FOMC officials still believe that the US economy will grow rapidly and the economy has made progress towards the goal of full employment.
Powell said that high inflation has brought great difficulties to people, and now the range of price increases is wider. In addition, the Fed staff significantly revised their expectations for the unemployment rate in the United States. How long the labor shortage will last is unknown.
Faced with the most severe inflation situation in decades, the Federal Reserve announced that it would end its asset purchase plan ahead of schedule, and hinted that it was inclined to raise interest rates faster than economists expected in 2022.
In line with market expectations, US stocks closed sharply higher.
The Fed's meeting on interest rates came to an end, keeping the benchmark interest rate unchanged at 0%-0.25%, in line with market expectations. Us stocks rebounded from the bottom and closed higher across the board. The Dow Jones index closed up 65,438 points +0.08%, the Nasdaq index closed up 2.65,438 points +0.05%, and the S&P 500 index closed up 65,438 points +0.63%.
Biopharmaceuticals, semiconductors and Internet technologies rose across the board.
In terms of individual stocks, Lilly rose more than 10%, and Pfizer rose nearly 6%; AMD rose by 8%, NVIDIA by 7.5% and ASML by 5%; Oracle Bone Inscriptions rose by 2.76%, Apple by 2.85% and Qualcomm by 4%.
Us crude oil futures closed slightly higher. WTI 65438+1October crude oil futures closed up 0.05 USD, or 0.07%, to 70.78 USD/barrel. In February, Brent crude oil futures closed up 0. 18 USD, or 0.24%, to 73.88 USD/barrel.
Dollar index, late diving. By late afternoon in new york, the US dollar index, which measures the US dollar against six major currencies, fell 0.22% to 96.3400.