The Federal Reserve System of the United States consists of the Federal Reserve Board in Washington, D.C. and 65,438+02 regional federal reserve banks in major cities of China. Janet yellen is currently the CEO of the Federal Reserve (Chairman of the Board of Directors of the Federal Reserve). As the central bank of the United States, the Federal Reserve obtains power from the United States Congress, and exercises duties such as formulating monetary policy and supervising American financial institutions.
In the early morning of March 20 16, Beijing time, the Federal Reserve announced that it would keep interest rates unchanged as expected, reducing the number of interest rate hikes during the year from the previous four to two. The hidden downside risks of the global economy and the low inflation rate in the United States have become two major concerns for the Fed to suspend interest rate hikes.
At 20 16, Beijing time, 16, the Federal Reserve announced its interest rate resolution, announcing a 25 basis point interest rate hike, and at the same time raising the target range of the federal funds interest rate to 0.5%-0.75%. The resolution statement was unanimously adopted. This is the second time that the Federal Reserve has raised interest rates for the first time since February 20 15, after a full year.
Beijing time 20 16 12 15 After the Federal Reserve announced that it would raise interest rates for the first time this year, the Hong Kong Monetary Authority also indicated that it would raise the benchmark interest rate from 0.75% to 1%, that is, raise interest rates by 25 basis points.
Raising interest rates means that the dollar will appreciate, so in the foreign exchange market, it means that the dollar will appreciate and other currencies will depreciate.
Raising interest rates by the Federal Reserve will make everything in the world no longer cheap, and capital, oil, raw materials and food will all become very expensive. Imported inflation in China is inevitable.