<Anchor> This is a



friendly economic time. Today (30th) will also be with reporter Kim Hye-min. Last weekend, I saw a lot of articles about the 'Jackson Hole Meeting' in the United States. First, let me explain what the Jackson Hole Meeting is.



<Reporter>



Today, as the name of the corner, kindly explain about the Jackson Hole meeting and tapering. The Jackson Hole meeting was held last week, and on Friday night, Federal Reserve Chairman Jerome Powell spoke here.



The Federal Reserve is the central banking system of the United States, which determines monetary and financial policies and manages and oversees banks. It's not exactly the same, but to explain it a little more simply, it is an institution that does a similar job to the Bank of Korea in Korea.



Also, the Jackson Hole Meeting is an economic and monetary policy discussion held in the United States in August every year, attended by central bank governors and economists of major countries, that is, key figures influencing the global economy.



Chairman Powell's speech was scheduled for this forum, and there were many observations that a 'tapering' plan would be announced, so there was a lot of interest.



<Anchor> In the



end, it was because of interest in how the American business community related to tapering would judge it. By the way, you will be tapering within this year, was this the official chairperson?



<Reporter>



Yes. The dictionary meaning of 'tapering' is "to taper at the end". In economic terms, it is used to mean recovering money that has been loosed in the market.



Last year, the Federal Reserve lowered its benchmark interest rate to zero, and has been supplying liquidity to the market by buying government bonds every month.



After that, when inflation and employment levels rise to a certain extent, tapering begins, and when the target is reached, raising interest rates has been considered the next step.



There have been many observations as to whether this tapering is done and when the 'time' is, but this time, Chairman Powell officially announced that he could begin the tapering process within this year. Let's hear it for yourself.




[Jerome Powell/Federal Reserve Chairman: If the economy develops as broadly as expected, I think it might be appropriate to start slowing down asset purchases later this year.]



But even if the tapering

begins, he said,

this is not a signal that the rate will be raised. He said that interest rate hikes will be judged on stricter standards.



<Anchor>



Even in the first half of the year, when the US price went up for a while, the tapering would start soon. But this time the US stock market rose, on the contrary.



<Reporter>



Yes. There's a reason why people are so interested in this tapering period, because it has had a huge impact on the stock market in the past.



In 2013, when then-Chairman Ben Bernanke predicted a tapering, a large amount of investment funds in emerging markets went out, and the stock price plummeted.



The Korean KOSPI also experienced a plunge from 2001 to 1,800 in one month. But this time it was a little different.



What financial markets hate the most is uncertainty. However, this uncertainty has been resolved to some extent as Chairman Powell's remarks confirmed that the tapering will start within this year.



Conversely, it was judged that concerns about austerity caused by interest rate hikes had been resolved. As a result, the US stock market hit an all-time high. It also seems to have an impact on domestic stocks today to some extent.



<Anchor>



i See. So, it seems that the resolution of uncertainty has a positive effect on the stock market. If you look at related articles, for example, Chairman Powell is a dove, or the Fed has a lot of hawks, and there are many stories like this. What does this dove, hawk mean? Please explain.



<Reporter> According to



the characteristics of birds, it is divided into two types: hawks and doves. The hawks are those who have radical and hard-line tendencies, and the doves are those who promote moderate policies.



From an economic point of view, hawks are a little different. They value price stability, so they pursue a austerity policy that collects the currency by raising the base rate.



On the other hand, the doves prioritize economic growth and advocate quantitative easing by lowering the base rate to release money into the market.



This time, Chairman Powell was evaluated for continuing a dovish move while foretelling a tapering but blocking expectations for an interest rate hike.



However, there are quite a few hawkish insiders inside the Fed, arguing that we should start tapering as soon as possible and raise rates.



There is also a diagnosis that Fed members have a growing divergence of opinion over monetary tightening.



As Fed members lead the global financial market, paying attention to what they will do in the future seems to be able to predict the impact on the domestic economy to some extent.