<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, as the inflation rate forecast was raised significantly.
Correspondent Kim Jong-won.
<Reporter> The
US Federal Reserve has decided to keep interest rates at the current zero level after two days of meeting.
The current steep inflation is a temporary phenomenon following the recovery of the corona virus and is considered to be controllable.
[Jerome Powell / US Federal Reserve Chairman: I have this interest rate freeze our calls through policies that may help to continue to be the economy recover fully
, but the recent soaring price future inflation expectations are big The width has been increased.
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.
The Fed expects to raise rates twice in 2023, slightly earlier than previously predicted that rates will remain at zero 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 again the Fed has not mentioned tapering.
Contrary to expectations, the New York Stock Exchange traded mixed up and down after the Fed's announcement, which did not change much.