<Anchor> The
US central bank, the Federal Reserve, raised interest rates by 075% again.
Interest rates in Korea and the US inverted again.
Correspondent Kim Jong-won from New York.
Correspondent Kim, in the end, as the market expected, the US raised the key interest rate by 0.75 percentage points.
The price situation is not that good.
Should I understand this?
<Reporter>
Yes, the 0.75 percentage point rate hike for the third consecutive year is very unusual.
The US started raising interest rates in March after continuing with zero interest rates, and raised the interest rate by 3 percentage points in just half a year.
This is the fastest rate increase since the Fed adopted the current federal funds rate as its base rate in 1990, and in short, it is the first time it has raised interest rates so quickly.
But Fed Chairman Jerome Powell has nailed down that there will be no rate cuts until inflation hits, hear it for yourself.
[Jerome Powell/Federal Reserve Chairman: I think it is appropriate to continue raising interest rates in the future.
We will maintain the current policy stance until the inflation rate drops to 2%.]
The Fed's target for inflation is 2%, but the consumer price index announced recently for August showed that the inflation rate was 8.3% higher than the previous year. Joe, this means that interest rates will continue to rise for some time to come.
<Anchor> The
New York Stock Exchange also fell a lot, didn't it?
<Reporter>
Yes, all three of the New York Stock Exchanges are down more than 1.7%.
The 0.75 percentage point increase today (the 22nd) was actually expected, but it fell sharply because of the Fed's dot plot announced today and the prospect of future interest rate hikes.
With today's giant step, the US benchmark interest rate has now risen from 3% to 3.25%.
However, the Fed expects to raise interest rates to 4.4% by the end of this year and to 4.6% by the end of next year.
This is much higher than the previous forecast, and today's interest rate hike has reversed the benchmark interest rates in Korea and the US again.
This increases the risk of foreign capital leaving the country in search of higher interest rates.
The Bank of Korea, which raised interest rates for the first time in history, is now in a situation where it has no choice but to think about another rate hike.