US Fed Chairman Powell, who made an unusually large rate hike last week, said in a parliamentary testimony on the 22nd that "price stability is absolutely necessary" and will accelerate monetary tightening. I showed the policy.
With no signs of convergence in record inflation, the Fed decided at a meeting last week to raise rates significantly by 0.75% for the first time in about 27 and a half years.
Powell, who attended a hearing in the Senate on the 22nd to explain the direction of the policy, said that inflation control "is not going to cause a recession, but it is absolutely necessary to restore price stability. He emphasized that he would accelerate monetary tightening.
Meanwhile, in financial markets, there is widespread belief that the Fed will decide to raise rates significantly by 0.75% at next month's meeting, but Powell said, "Looking for evidence of lower inflation in the coming months. The pace of rate hikes depends on future data. "
Following the unexpected rise in consumer prices announced shortly before last week's meeting, the Fed has reviewed the previously indicated rate hikes and is willing to react swiftly at each meeting. It is also the shape shown.
At the hearings, lawmakers have pointed out that a rapid rate hike may lead to a recession, and the Fed is expected to proceed with policies while assessing both prices and the economy.