Federal Reserve Chairman Powell, the central bank of the United States, said at a meeting next month that he would consider raising rates by 0.5%, which is twice the normal rate, to curb inflation to a record level. He has indicated a policy of urgently tightening monetary policy.
Fed Chair Powell attended a debate in Washington on the 21st, saying, "We should move a little faster and consider raising rates by 0.5% at the May meeting." Said.
The Fed decided to raise rates by 0.25% at last month's meeting to curb inflation, turning to monetary tightening.
On the other hand, inflationary pressure remains high, with consumer prices in the United States rising to the 8% level for the first time in 40 years, partly due to the impact of Russia's invasion of Ukraine.
For this reason, Chair Powell has indicated his intention to accelerate monetary tightening by mentioning a 0.5% rate hike, which is twice the normal rate.
At next month's meeting, we may also decide on a measure called "quantitative tightening," which will reduce the Fed's assets such as government bonds.
In the foreign exchange market, the yen is depreciating rapidly and the dollar is appreciating from the perspective that the interest rate differential will widen against the backdrop of the difference in the direction of monetary policy between the United States and Japan, and interest in the Fed's policy is increasing. increase.