The Federal Reserve Board, the central bank of the United States, has decided to embark on a sharp 0.5% rate hike for the first time in 22 years and a reduction in financial assets called "quantitative tightening."
Powell has indicated his intention to continue raising rates by 0.5% at the next two meetings, demonstrating a rush to curb record inflation.
At a meeting held until the 4th, the Fed decided to raise the policy rate by 0.5%, which is twice the normal rate, in order to curb inflation.
This is the first significant rate hike of 0.5% in 22 years.
In addition, the Fed has decided to begin a response called "quantitative tightening" next month to gradually reduce financial assets such as government bonds it holds.
Powell said at a press conference that "a 0.5% rate hike will be considered at the next two meetings," and said he intends to continue to raise rates by 0.5% at the next and July meetings. ..
This time, the Fed has clarified its stance of prioritizing inflation response, saying that the US economy is strong and that even if monetary tightening is tightened, it will not fall into recession.
On the other hand, there are uncertainties in the world economy, such as the situation in Ukraine and the Chinese economy, which continues to take strict measures against corona, so it is necessary to pay close attention to the impact of the Fed's response on the future.
For Japan, the difference in the direction of monetary policy between Japan and the United States, which is behind the recent rapid depreciation of the yen and the dollar, will become even more prominent, so it is essential to keep an eye on the trend of the yen and its impact on the economy. No situation continues.