US interest rate futures big size hike likely in May or June 2004~2006 US interest rate trend & #169; Source – Trading Economics
Reporter Shin Ki-rim = The US futures market expects the central banks Federal Reserve to raise interest rates as it did in 2004-2006, Reuters reported on the 16th.
At the time, the Fed raised interest rates every time it held the Federal Open Market Committee of the Monetary Policy Meeting, and raised it 17 times in a row.
The interest rate rose by 0.25 percentage points at each FOMC meeting from June 2004 to June 2006, rising by 4 percentage points. A series of interest rate hikes have curbed inflation, but at the same time weakened the economic recovery, Reuters said.
It is unclear at what rate the Fed will raise rates this year, 15 years later, but the futures market sees a high chance of a 0.5 percentage point increase in May or June when the next FOMC is held, Reuters reported.
Fed Chairman Jerome Powell also did not rule out the possibility of raising the rate. If inflation does not slow more than expected, the Fed will speed up rate hikes, he said.
In fact, 7 out of 16 members of the FOMC predicted that the rate of interest rate hike this year would be 0.5%p at least once.
Richard Moody, chief economist at Regions Bank, said it was clear that the FOMC members were sending aggressive signals to bring down inflation and expected inflation.