Fed decides to raise rates significantly Unusual response US economy is in an important phase

On the 15th, the Federal Reserve Board, the central bank of the United States, decided to raise interest rates by 0.75%.

The US economy will enter an important phase as it will be an unusual response to widen the rate hike that was previously indicated, and whether inflation can be suppressed without causing a recession.

The Fed decided to raise interest rates by 0.75% for the first time in about 27 and a half years at a monetary policy meeting held until the 15th.

The rise in consumer prices last month, announced last weekend, reached its highest level in about 40 and a half years, making it an exceptional response to further expand the previously indicated 0.5% rate hike.

In the United States, experts have pointed out that the Fed's response to control inflation has been delayed, but Chairman Powell said at a press conference, "0.5% or 0.75% at the next July meeting. There is a high possibility of a rate hike, "he said, emphasizing the stance of continuing to raise rates significantly and rushing to calm prices.

In the foreign exchange market, the yen depreciated and the dollar strengthened against the backdrop of the difference in the direction of monetary policy between Japan and the United States, but the composition of the difference in direction becomes even more prominent.

Meanwhile, in the United States, last month's retail sales, which show the trend of consumer spending announced on the same day, fell for the first time in five months.

The Fed's rapid rate hike could be a burden to economic activity, and the US economy will enter an important phase as to whether inflation can be curbed without causing a recession.

Chief Cabinet Secretary Matsuno "We will continue to pay close attention to the impact."

At a press conference in the morning, Secretary-General Matsuno said, "I would like to refrain from making specific comments on monetary policy in other countries, but in light of the impact of changes in monetary policy in the United States on financial markets, how will the Japanese economy and the world economy be affected? We will continue to pay close attention to whether there will be any impact. "

Keidanren Chairman Tokura "I think it's an appropriate measure."

Regarding the US Federal Reserve's decision to raise interest rates by 0.75%, Keidanren Chairman Tokura told reporters on the afternoon of the 16th, "If inflation progresses, it will be a countermeasure to pick buds early. In a nutshell, the US is overheating and it means to cool it down as soon as possible, so I think it's an appropriate measure. "

In addition, when the Bank of Japan maintained large-scale monetary easing, the yen depreciated against the backdrop of interest rate differentials between Japan and the United States, which may have affected corporate activities. The high prices are not suffering from the exchange rate, but due to the influence of the new corona and Russia's invasion of Ukraine. How about linking it to the exchange rate and having a straightforward discussion about the BOJ's monetary policy? I think. "

He added, "Forex is a reflection of the basic state of the economy, and the problem of yen depreciation has no choice but to strengthen Japanese companies, the economy, and industry." I emphasized that it is important.