The Federal Reserve Board, the central bank of the United States, will meet this week to decide on monetary policy to discuss two monetary tightening measures: a double rate hike and a reduction in financial assets held.
The impact on the yen's exchange rate, which is rapidly depreciating, is also attracting attention in order to hurry to curb record inflation.
Consumer prices rise to the 8% level in March
The Fed lifted its zero interest rate policy at its March meeting last time and decided to raise interest rates, but consumer prices in March will be the first in 40 years due to the rise in energy prices triggered by Russia's invasion of Ukraine8. It has risen to the% level.
For this reason, Fed Chairman Jerome Powell will consider raising the policy rate by 0.5% at a stretch, which is double the normal rate, at this meeting held on the 3rd and 4th.
We will also discuss the start of a response called "quantitative tightening," which will gradually reduce assets such as government bonds purchased from the market under monetary easing measures.
We are poised to hurry to curb record inflation with two tightening measures, but there are challenges in the US economy such as the economic growth rate turning negative for the three months until March, and the Fed is not overcooling the economy. The skill of is questioned.
In the foreign exchange market, the yen is depreciating and the dollar is appreciating rapidly against the backdrop of the difference in the direction of monetary policy between Japan and the United States, and how the market will accept the results of this meeting is also drawing attention.