There are different reactions to the Fed's interest rate hike, including supporters and critics. Former US Labor Secretary Robert Reich warned that the Fed's move was "playing with fire" and that raising interest rates again would lead to "financial chaos" in the United States. Reich's criticism is not just nonsense, but a response to the collapse of Silicon Valley banks and signature banks.
It is generally believed that the collapse of Silicon Valley banks and signature banks is closely related to the aggressive interest rate hike by the Federal Reserve. The interest rate hike has led to serious "floating losses" in the US Treasury bonds purchased by banks, and financial contradictions have emerged after depositors have withdrawn their money, and eventually they have fallen into the quagmire of bankruptcy.
Inflation growth in the United States has eased, but it is still difficult to control.
After the Fed offered the most radical interest rate hike stick in more than 40 years, American inflation turned down after hitting a high of 9. 1% in June 2022, and fell back to 6.5% in June 65438+February. However, according to the agency's forecast, the inflation rate in the United States will remain at around 6% this year, maintaining a high level. The most important thing is that the factors pushing up inflation in the United States have not been eliminated.
At present, the uncertain factors that affect the instability of the world economy and push up inflation still exist, the Ukrainian crisis has not stopped, the supply shock persists, and geopolitical conflicts still bring disturbances to energy prices and food prices. The sanctions imposed by the United States and Europe on Russia have pushed up inflation. The restart and growth of multinational economies boosted demand, and the global supply chain game supported inflation.