The US Federal Reserve is set to discuss two monetary tightening policies at its meeting this week designed to curb inflation.
Federal Reserve Chair Jerome Powell says its policymakers will consider an interest rate increase of a half-percentage point and the reduction of its financial assets at their two-day meeting starting Tuesday. The rate increase would be twice the usual size.
At its meeting in March, the Fed decided to raise rates by a quarter-percentage point from near zero. But consumer price inflation continued to rise to the 8-percent level, a 40-year high, along with an increase in energy prices following Russia's invasion of Ukraine.
The double monetary tightening is aimed at curbing inflation, but could dampen the economy too much.
US economic growth shrank in the first quarter of this year.
Analysts are watching to see how financial markets will respond to the outcome of the Fed meeting. The Japanese yen has weakened drastically against the dollar recently due to different central bank monetary policies.
Federal Reserve Chair Jerome Powell says its policymakers will consider an interest rate increase of a half-percentage point and the reduction of its financial assets at their two-day meeting starting Tuesday. The rate increase would be twice the usual size.
At its meeting in March, the Fed decided to raise rates by a quarter-percentage point from near zero. But consumer price inflation continued to rise to the 8-percent level, a 40-year high, along with an increase in energy prices following Russia's invasion of Ukraine.
The double monetary tightening is aimed at curbing inflation, but could dampen the economy too much.
US economic growth shrank in the first quarter of this year.
Analysts are watching to see how financial markets will respond to the outcome of the Fed meeting. The Japanese yen has weakened drastically against the dollar recently due to different central bank monetary policies.
Similar Readings (5 items)
Fed is likely to raise interest rate by half point this week
Fed to raise key rates, reduce financial assets to combat inflation
FED officials call for rate hike to be kept in place
U.S. Fed slows pace of interest rate hikes, but keeps hawkish stance
Fed raises key interest rate by 0.75 percentage point
Summary
Upcoming Federal Reserve meeting will discuss double monetary tightening policies: interest rate hike of half-percentage point and asset reduction. The move aims to combat inflation at 8%, a 40-year high, following energy price increases due to the Ukraine conflict. Economic growth has slowed in
Statistics
166
Words1
Read CountDetails
ID: 626f0ce2-cef0-43da-abcd-455bc0a80b98
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20220502_06/
Date: May 2, 2022
Created: 2022/05/02 07:42
Updated: 2025/12/09 16:37
Last Read: 2022/05/02 07:42