The U.S. Federal Reserve held its benchmark interest rate at the 4.25 to 4.5 percent range despite President Donald Trump's demands for a cut, with the central bank waiting to react to enacted policies.
The Fed’s quarter percentage point rate increase has partially resolved economic uncertainties, according to local financial authorities.
The domestic financial market is starting to recover from the U.S. Fed’s slowing rate increase and the government’s market stabilization measures, said financial authorities Thursday.
Korea’s stock and foreign exchange markets recovered to levels unseen in months following U.S. Federal Reserve Chairman Jerome Powell’s signal on slowing down the pace of upcoming interest rate increases.
Korea's central bank continued to waffle on the issue of whether a currency swap with the United States is being pursued, even as the won collapsed and the financial markets in general were in turmoil.
The government must raise vigilance to prevent the instability building up to a crisis as the volatile conditions are expected to continue throughout next year until prices come down.
Bank of Korea Gov. Rhee Chang-yong said the central bank's monetary policy direction remains unchanged following hawkish remarks from the U.S. Fed chief in Jackson Hole over the weekend.
The won renewed decade-plus lows after central bankers reaffirmed their hawkishness in Jackson Hole, Wyoming, over the weekend.
Korea JoongAng Daily Sitemap
