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The US raised the key interest rate by 0.5%p for the first time since 2000.
It was judged that inflation was serious, and from next month, we decided to start quantitative tightening by recovering the money released from the market.
Correspondent Kim Jong-won reports from New York.
<Reporter> The
US Federal Reserve has started aggressively raising interest rates in response to the worst inflation in more than 40 years.
It was decided to raise the base interest rate by 0.5 percentage points.
The Fed usually raises interest rates by 0.25%p when necessary, but this is the first time since 2000 that it has taken a 0.5%p big step all at once.
However, while Chairman Powell said he could raise two or three more 0.5%p in the future, he drew a line on the theory raised by some that it could raise a giant step, that is, 0.75%p all at once.
[Jerome Powell / Chairman of the Federal Reserve System: There is a broad consensus among Fed members that an additional 0.5 percentage point increase is necessary at the next two or three financial policy meetings.
A 0.75%p increase is not currently being actively considered by the committee.]
As soon as Powell's remarks came out, the New York stock market turned upside down and all three major indexes rose around 3%.
Chairman Powell announced that, along with interest rate hikes, from next month, quantitative austerity measures to reach $8.9 trillion, or KRW 1,120 trillion, will be initiated.
He expressed confidence in the possibility of a recession caused by austerity measures.
[Jerome Powell/Chairman of the US Federal Reserve System: The US economy is currently healthy, so there is no possibility of a recession.] It is said that the
US economy can survive with a strong income income and job market. Concerns are growing over whether the US economy will be able to make a soft landing amid political uncertainty.