The CPI of the United States continued to reach a new high in March, and the expectation of the Federal Reserve raising interest rates by 50 basis points increased. The previously announced CPI of the United States in March rose by 8.5% year-on-year, continuing to set a new high for more than 40 years, and the increase was slightly higher than market expectations. Soaring international crude oil prices and rising housing costs are the main reasons for the rise in CPI. With inflation rising, a number of Fed officials also released a signal of substantial interest rate hikes this week. Among them, Evans of the Federal Reserve said that the rate increase of 50 basis points is worth considering and is highly likely. Federal Reserve governor Waller said that the Federal Reserve will continue to raise interest rates to control inflation. It tends to raise interest rates by 50 basis points in May and more in June and July. In addition, affected by the conflict between Russia and Ukraine, IMF President georgiyeva said this week that she would lower the global economic growth prospects for this year and next. The conflict in Ukraine will lead to a decline in the economic growth prospects of 143 economies, accounting for 86% of global GDP. The continued rise in inflation data boosted the market's expectations of the Fed's more aggressive tightening policy and brought action to the US index. This week, the US dollar index rose 0.68% to 1005201. The euro fell 0.56% to 1.0816 against the US dollar. The European Central Bank announced an interest rate resolution to keep the three key interest rates unchanged. It is confirmed that the net purchase of the asset purchase plan will end in the third quarter, and it is reiterated that the interest rate will be increased "gradually" after a period of time after the net purchase of bonds. European Central Bank President Lagarde said that the conflict between Russia and Ukraine has increased the risk of record inflation rising further, and economic growth in the eurozone is expected to remain weak in the first quarter of this year. The European Central Bank did not give a specific interest rate increase plan at this meeting, which is generally lower than the market Hawks' expectations. Money markets cut their bets on the ECB tightening monetary policy. In terms of commodities, the international oil price rose again this week, as the EU may gradually ban oil imports from Russia, and the organization of petroleum exporting countries is difficult to fill the supply reduction gap in Russia. The price of NYMEX crude oil futures rose 8.43% to US $106.54/barrel. In addition, due to the continuous conflict between Russia and Ukraine and the continuous warming of global inflation, despite the strong rise of the US dollar and the interest rate hikes of central banks in many countries, the international gold price remained rising this week, and Comex gold week rose 1.62% to 1977.1 US dollars / ounce.
© China Stock Market News