After the emergence of the new mutant virus, senior Federal Reserve officials said: The possibility of two interest rate hikes next year certainly exists |

Install the Sina Finance client to receive the most comprehensive market information the first time →[download link]

After the emergence of the new mutant virus, senior Federal Reserve officials said: The possibility of two interest rate hikes next year certainly exists

Source: Wall Street

Atlanta Fed President Bostic said that the new mutant virus may slow down the US economy, but the resistance will be smaller than in the past.

After the emergence of the new mutant virus Omicron, the President of the Atlanta FedBosticDownplayed its risks to the U.S. economy, and expressed his willingness to reduce the scale of bond purchases at a faster rate in order to control inflation.

Bostic, a member of the FOMC this year, said in an interview with Bloomberg on Friday:

I am very willing to speed up the pace of slowing down debt purchases. For me, if the economic momentum continues as it has in the past few months, then the beginning of the second quarter and the end of the first quarter of 2022 will be a reasonable choice for us to stop buying debt.

　　When asked if he thinks the Fed will raise interest rates twice next year, he said, “Of course it is possible. I will not give up any form of action.”

Due to the emergence of the new mutant virus Omicron, U.S. Treasury yields fell sharply earlier on Friday as investors reduced their bets on the acceleration of monetary policy tightening.

Moreover, concerns about travel restrictions prompted the market to postpone the expected time for central banks to raise interest rates. Among them, the market postponed the expected time for the Fed to raise interest rates for the first time by 25 basis points from June next year to September next year. There will be more interest rate hikes.

Previously, due to the soaring inflation, some Fed officials have begun to discuss speeding up the pace of reducing debt purchases;Goldman SachsIt is also particularly hawkish that the Fed will complete Taper in March next year and will raise interest rates three times next year.

Bostic said,The new mutant virus may slow down the US economy, but the experience learned during the epidemic shows that the resistance will be smaller than in the past.

He said: “Our current economic momentum is strong. I hope that this momentum will lead us through the next wave.”

　　But he also warned, “All these are based on the new virus and DeltaSimilar ideas and concepts. “

Risk warning and exemption clause

Market risk, the investment need to be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, opinions, or conclusions in this article are consistent with their specific conditions. Invest accordingly at your own risk.

Editor in charge: Wang Ting