Jerome Powell: Raising interest rates against rising inflation | Macro Markets

(Reuters) The US monetary authorities are likely to discuss raising the interest rate by half a percentage point at their meeting in May. Fed Chairman Jerome said, given the high level of inflation, it is appropriate to move a little faster Powell On Thursday at the IMF spring meeting: “I would say 50 basis points will be on the table for the May meeting.”

Wall Street immediately responded to the comments. Dow Jones.DJI It fell and fell last time 0.8%. Broader S&P 500 Index.SPX lost 1.4%, Nasdaqnineteenth 1.9%. «Powell It indicates that avoiding a recession will not be easy. “This is new,” said Tim Gresky, portfolio strategist at Ingalls & Snyder in New York.

In light of high inflationary pressure, financial markets are already expecting unusually large interest rate hikes of half a percentage point in both May and June. Recently, Central Bank Governor James Bullard did not rule out a move of 0.75% at the May meeting. stockbroker We expect the Fed to raise rates to a range between 2.75% and 3.0% by the end of the year, Pollard spoke up for 3.5%. that sets many of increases forward. The next modified meeting is In the 3 and 4 May.

Inflation in the US rose to its highest level in more than 40 years in March. The cost of goods and services is on average 8.5% higher than the same month last year. “We are really committed to using our tools to push inflation back,” he said. Powell. he is At the same time admitted that the Fed hopes that inflation Reopen The economy after the epidemic has not yet materialized carrying out. These forecasts have been disappointing in the past. We want to see real progress.”