ChainCatcher, citing Jinshi, reported that the Federal Reserve has unexpectedly shifted toward a more aggressive rate-hike stance, showing deeper concern over persistently high inflation. The latest dot plot shows that nine officials support raising rates this year, while six officials support two or more increases, with each move set at 25 basis points.
The change marks a clear contrast with March, when no policymaker projected a rate increase. The report also said Warsh emphasized the Federal Reserve’s determination to fight inflation. Matthew Luzzetti, chief U.S. economist at Deutsche Bank, said the risk of Fed rate hikes has clearly risen.
Financial markets reacted noticeably to the shift. According to the report, stocks fell sharply, while bond yields moved higher. The news item was categorized as policy and regulation, with its focus placed on the Fed’s stance, the dot plot adjustment, and the reaction across traditional financial markets.