US Fed zero interest rate policy lifted outlook ahead of schedule in 2023

The Federal Reserve Board, the central bank of the United States, held a meeting to decide monetary policy, and in response to the economic recovery and rising prices, the time to lift the zero interest rate policy, which had been set after 2024, will be in 2023. The prospect of moving forward was shown.

The Fed held a monetary policy meeting for two days until the 16th and decided to maintain the current large-scale monetary easing policy consisting of zero interest rates and quantitative easing.

On the other hand, according to the outlook for the future policy interest rate by 18 participants of the notable meeting, 13 people predicted that the zero interest rate will be lifted by the end of next year and 2023, from 7 people as of 3 months ago. The number has increased significantly, and the outlook for the time to raise interest rates after 2024 has been advanced.

In the United States, the economy is recovering against the backdrop of the spread of the new coronavirus vaccine and the government's economic measures, and the prices of a wide range of goods and services are rising, and the forecasts of the participants this time reflect this economic situation.

Participants' forecasts of prices and economic growth have all been revised upward from three months ago, and the rate of increase in prices as of the fourth quarter of this year was 3.4%, well above the Fed's target of 2%. In addition, the economic growth rate is expected to be 7.0%.

"Some of the factors behind the rise in prices are likely to be temporary," Powell said at a press conference, emphasizing his tenacious commitment to continuing monetary easing for the foreseeable future.

At this meeting, attention was also paid to what kind of discussions were held on the timing of starting the scale reduction over quantitative easing, which is a pillar of monetary easing along with the zero interest rate policy.

He acknowledged that he had begun discussions at the meeting and said, "We will not talk about the timing of the contraction until we see more economic indicators."