<Anchor> The
US central bank, the Federal Reserve, has kept interest rates at zero. However, it is expected to raise interest rates twice in 2023, earlier than originally planned, while significantly raising the inflation forecast.
Correspondent Kim Jong-won from New York.
<Reporter> The
US Federal Reserve has decided to keep interest rates at the current zero level after two days of meeting.
The current steep rise in inflation is a temporary phenomenon following the recovery of the corona virus and can be controlled.
[Jerome Powell / US Federal Reserve Chairman: I would be able to give our monetary policy to help continue there is the economy is fully recovered through this rate freeze -
but the future inflation outlook in the recent skyrocketing prices sharply upgraded to .
This is a 1% increase from the March estimate of 2.4% to 3.4%.
We also raised our GDP and GDP estimates from 6.5% to 7%.
Accordingly, the timing of interest rate hikes is expected to be somewhat earlier.
In separate data, the Fed predicted two rate hikes in 2023, a bit earlier than the previous forecast of zero interest rates through 23.
On the other hand, expectations that the Fed will begin tapering have been misguided as inflation concerns have grown recently.
Tapering refers to reducing the government's purchase of assets to free money from the market, but the Fed did not mention tapering this time as well.
Contrary to expectations, the New York Stock Exchange traded mixed up and down after the Fed's announcement, which did not change much.