In 2022, it was announced that the federal funds rate would be raised by 50 basis points to the target range of 4.25-4.50%. This rhythm is in line with the expectations of the CME interest rate futures market since the interest rate meeting in early 10 and the Fed's bitmap guidance in September. At the same time, in line with the new federal funds interest rate range, the Federal Reserve also raised several other policy interest rates:

1) Raise the deposit reserve interest rate from 3.9% to 4.4%;

2) Raise the overnight repo rate from 4.0% to 4.5%;

3) Raise the overnight reverse repo rate from 3.8% to 4.3%;

4) Raise the interest rate of primary credit from 4.0% to 4.5%. In terms of shrinking its balance sheet, the Fed will maintain its original plan, that is, passively reduce its holdings of $60 billion in government bonds and $35 billion in institutional bonds and MBS every month.