Amid a series of bank failures in the United States, the Fed = Federal Reserve, which is the central bank, decided to raise the interest rate by 21.2% at a meeting held for two days from the 0st. It is a form of determination to contain inflation even as uncertainty about the financial system simmers.
The Federal Reserve held a two-day meeting to decide monetary policy from the 21st.
The statement stated that "the U.S. banking system is healthy" and that "recent developments will tighten household and corporate credit conditions, affecting economic activity, employment, and inflation."
On top of that, we decided to raise the policy rate by 2.0 percent, noting that it is uncertain what these effects will be and that we need to continue to carefully address the risk of inflation.
This will result in a range of 25.4% to 75% policy rates.
In the United States, two banks failed one after another, and Silicon Valley Bank is believed to have failed because the price of its bonds fell due to the rapid interest rate hike by the Fed, leading to a deterioration in finances.
As a result, some market participants were of the view that they would temporarily suspend interest rate hikes in order to assess the impact on the financial system.
It is a form of determination to contain inflation even as uncertainty about the financial system simmers.
The U.S. government and the Federal Reserve have repeatedly emphasized that the banking system is strong and sound, with a series of unusual measures to dispel concerns about the financial system, including full protection of deposits.