The US Federal Reserve becomes more hawkish, and long-term interest rates rise to the highest level in about 19 years.

[Washington, New York Current Affairs] The US Federal Reserve (FRB) is becoming increasingly hawkish in its aggressive policy of monetary tightening. Long-term interest rates have soared in the market due to expectations of an early interest rate hike. At a press conference last week, Chairman Warsh expressed caution about persistent inflation, saying, ``The underlying trend has not improved significantly,'' and the focus will be on whether to take further interest rate hikes at next month's monetary policy meeting.

US Federal Reserve raises interest rates by 0.25% for the first time in three years to avoid prolonged inflation - policy change, further tightening expected

At last week's Federal Open Market Committee (FOMC) meeting, the Federal Reserve decided to raise interest rates for the first time in about three years. It also predicted one more interest rate hike by the end of the year. "Further policy adjustments are likely to be necessary," Barr said in a speech on the 23rd. Other senior Fed officials have also expressed a positive outlook on tightening the economy "more aggressively and earlier than ever" (Chicago Federal Reserve Bank President Goolsby).

In financial markets on the 23rd, bond selling accelerated on expectations that the Federal Reserve will raise interest rates early, coupled with solid economic indicators. The yield on 10-year US Treasuries, an indicator of long-term interest rates, temporarily hit the 5.13% level, the highest level in about 19 years. At the end of trading, the yield was 5.12%, up 0.16 percentage points from the previous day.