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The Federal Reserve plans to raise interest rates to 0.75%-1%, the largest rate hike in nearly 22 years

After the Fed's interest rate meeting this morning, as expected, it announced a 50 basis point rate hike to the 0.75%-1% level, the second consecutive rate hike and the largest rate hike in nearly 22 years. At the same time, it announced that it will gradually reduce its balance sheet of 9 trillion US dollars since June 1, and the scale of reduction in the first three months is 30 billion (US dollars, the same below) treasury bonds and 17.5 billion mortgage-backed securities (MBS), and The monthly cap will be raised to 60 billion treasury bonds and 35 billion MBS. Federal Reserve Chairman Powell pointed out that the bureau is raising interest rates to a more normal level. Assuming that economic and financial conditions are in line with expectations, 50 basis points of interest rate hikes should be discussed in the next few meetings, but 75 basis points of interest rate hikes have not been actively considered. On the economic front, the bureau once again mentioned that the Russia-Ukraine incident is causing additional upward pressure on inflation and may put pressure on economic activity.
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