Deputy Governor Kwon Minsu: "Fed Held Rates Steady, but Concerns Over the Middle East, Major Economies' Fiscal Health and AI Persist"
At a BOK market conditions review meeting on the morning of October 29
"Will monitor domestic conditions with vigilance amid uncertainty over ECB and BOJ decisions and policy changes after U.S. midterm elections"
"The U.S. Federal Reserve (Fed) held interest rates steady overnight, as expected, but external risk factors remain, including persistent tensions in the Middle East, concerns about the fiscal soundness of major economies, and uncertainty surrounding investment in artificial intelligence (AI)."
Kwon Minsu, Deputy Governor of the Bank of Korea, said at a market conditions review meeting held at the BOK in Jung-gu, Seoul, on October 29, "With major economies, including the European Central Bank (ECB) and the Bank of Japan (BOJ), set to announce monetary policy decisions this week, and uncertainty also high over potential U.S. policy changes after the U.S. midterm elections on November 3, we will continue to closely monitor domestic financial and foreign exchange market conditions."
At the Federal Open Market Committee (FOMC) meeting held on October 27-28 local time, the Fed left its policy rate unchanged at 3.75-4.00%, in line with market expectations. Two members dissented. The committee upgraded its assessment of economic activity while leaving its inflation assessment unchanged. At a press conference, Fed Chair Kevin Warsh said that planned changes to how the FOMC operates would lead to a partial reduction in the number of rate-setting meetings starting next year.
Hot Picks Today
"Two Spend 500,000 Won in a Flash, Yet Wait Two Hours?" ... 'Dreamland' Shunned by Kids and Foreign Tourists
- The Era of Getting 200 Million Won After 30 Years Is Over... A Japanese Bank's "Perpetual Department Head" Who Just Clocked In Cries Out
- Spain Hit by Its Worst Tragedy... Lee Kangin, Moreno and Real Madrid Join Soccer World in Mourning
- They Said, “Make It Your Home for Life” - Then Suddenly Kicked 200 Passengers Off... What Happened to the Around-the-World Cruise?
- "130 Rice Bowls Sold Out in a Day"... 'Unfiltered Face' Adds 8 Million Won to Night Market Sales: China's Bungeunwoo
International financial markets viewed the FOMC's decision as less hawkish than expected, as Chair Warsh did not clearly signal a willingness to raise rates further. Yields on short-term U.S. Treasury securities fell, while those on long-term securities rose. Stocks advanced, and the U.S. dollar weakened slightly.
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
