US Fed raises key interest rate by 0.5 percentage point... Quantitative tightening from next month

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The US raised the key interest rate by 0.5 percentage points at a time.

It is usually raised or lowered by 0.25 percentage points, but for the first time since 2000, it has been raised by 0.5 percentage points at a time.

It was determined that inflation was serious, and from next month, we also decided to start 'quantitative austerity' to recover money loosed from the market. 

Correspondent Kim Jong-won reports from New York.

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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 rates by 0.25 percentage points when it needs to raise rates, but it is the first time since 2000 that it has taken a big step by 0.5 percentage points all at once.

However, Chairman Powell drew a line on the theory that a giant step, that is, a 0.75 percentage point increase at once, raised by some, even though he could raise two or three more 0.5 percentage points in the future.

[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.