<Anchor> The
US Federal Reserve has announced that it will start tightening the money lines it has loosened to stimulate the economy. Since the Corona 19 last year, we have been releasing money in the market by buying 120 billion dollars of bonds every month.
If the money line is tightened by next summer, there is a high possibility of raising interest rates by the end of the year.
<Reporter>
Thanks to the multiple announcements, the market reaction after the tapering announcement was calm.
All three major New York indices, including the Dow Jones, closed higher, and the KOSPI rose slightly.
The market is relieved as interest rates have been maintained at zero and concerns that interest rate hikes may be accelerated have been resolved.
[Jerome Powell/Fed Chairperson: Today's decision to begin tapering is not a direct signal that an interest rate hike is being considered.] The
Korean government also assessed that the immediate impact of tapering on the domestic financial market is 'limited'.
However, the US is highly likely to start raising interest rates in earnest after the second half of next year when the tapering ends.
There is also the possibility of a continuous increase on the 25th of this month and January next year.
The suffering of ordinary people who are already suffering from various loan regulations and market interest rates that fluctuate day by day is exacerbating.
In addition, concerns are growing that global inflation will last longer than expected.
[Jun Song / Senior Researcher, LG Economic Research Institute: We can't even make enough products due to supply chain disruptions, and costs are just going up.
The economic recovery is slowing, but prices are rising.] The
Korean economy, which has set a goal of 4% annual growth rate along with a step-by-step recovery of daily life, has met another ambush: global austerity.
(Video coverage: Park Dae-young, video editing: Jung Yong-hwa)