China News Agency, New York, November 2 (Reporter Wang Fan) The US Federal Reserve announced on the 2nd that it will raise the target range of the federal funds rate by 75 basis points to a level of 3.75% to 4%, which is in line with market expectations.

This is the fourth consecutive rate hike by the Fed by 75 basis points.

　　The Fed said in a statement after its two-day regular monetary policy meeting that recent indicators point to modest growth in U.S. spending and production, with strong job growth and low unemployment in recent months.

Inflation remains stubbornly high, reflecting supply and demand imbalances related to the Covid-19 pandemic, rising food and energy prices and broader price pressures.

In addition, related events such as the Russia-Ukraine conflict are putting additional upward pressure on inflation and weighing on the global economy.

　　The Fed places high priority on inflation risks and seeks to achieve its goals of full employment and a longer-term inflation rate of 2 percent, the statement said.

In support of these goals, the Fed decided to raise the target range for the federal funds rate to between 3.75% and 4%, with the expectation that such continued increases would be appropriate to develop a sufficiently restrictive monetary policy stance to allow inflation to increase over time. recovered to 2% over time.

In addition, the Fed will continue to shrink its balance sheet.

　　In determining the magnitude of future rate hikes, the Fed will take into account the cumulative tightening of monetary policy, the lag with which monetary policy affects economic activity and inflation, and developments in economic and financial conditions, the statement said.

　　Federal Reserve Chairman Jerome Powell said at a press conference after the regular monetary policy meeting that it is too early to consider a pause in interest rate hikes, and the current round of terminal interest rates may be higher than previous estimates.

Powell also pointed out that it would be appropriate to slow the pace of rate hikes from "sometime" in the future, "that time point is coming, possibly the next regular monetary policy meeting or a regular meeting after that."

He emphasized that there is no recession in the United States, but the possibility of a soft landing is shrinking.

　　When Powell spoke, the three major U.S. stock market indexes turned from gains to losses.

As of the close on the 2nd, the Dow Jones Industrial Average fell 505.44 points, or 1.55%, to close at 32147.76; the Nasdaq Composite fell 366.05 points, or 3.36%, to close at 10524.80; the Standard & Poor's 500 stock index fell 96.41 points , or 2.50 percent, to settle at 3759.69.

　　The "Wall Street Journal" quoted analysts as saying that Powell's remarks are still regarded as a hawkish attitude. His remarks that there will be no turning point in the road to interest rate hikes and that the terminal interest rate will be higher than previously expected have made investors once again. Concerned about the economic outlook.

Bloomberg said the Federal Reserve is in its most aggressive tightening since the 1980s to curb inflation, adding in a statement that it would raise interest rates to a sufficiently restrictive level, suggesting that this round of rate hikes may be more difficult than previously expected. lasting.

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