Financial authorities say Fed's rate hike to have limited market impact
The U.S. Federal Reserve's decision to raise its key rate for the first time in more than three years to combat inflation is expected to have a limited impact on financial markets as expectations of the move had already been priced in, financial authorities said Thursday. The assessment was made during a meeting chaired by Finance Minister Koo Yun-cheol and attended by Bank of Korea (BOK) Gov.…
Financial authorities have stated that the Federal Reserve's decision to hike its key interest rate for the first time in over three years will have a minimal impact on financial markets. This is because market expectations regarding the move have already been incorporated, according to officials who gathered to evaluate the potential consequences of the rate increase.
The Federal Reserve boosted its benchmark interest rate by a quarter of a percentage point, raising the target range to 3.75-4.00 percent. This move, which is the first since July 2023, was prompted by ongoing inflation and soaring oil prices. The participants deliberated on multiple factors, including the strength of the U.S. economy, employment data, and persistent inflation, as well as recent increases in oil prices and geopolitical uncertainties.
The finance ministry reported that these considerations influenced the Federal Reserve's decision to raise the interest rate.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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