Interest rates

US Fed to raise interest rates to over 4% next year: The DONG-A ILBO

Senior officials from the Federal Reserve System, the central bank of the United States, have said the Fed will raise base rates to more than 4% through early next year and hold them for a while. As Fed Chairman Jerome Powell and senior members issued a strong message to continue his policy of monetary tightening by “raising interest rates despite the pain”, the US stock market plunged nearly 4 % due to concerns about the global economic recession.

“I think we’re going to have to raise short-term interest rates … above 4% and probably have to keep them there next year,” the Federal Reserve chair and chief executive said. Bank of Cleveland, Loretta Mester, at the Fed. annual symposium held in Jackson Hole, Wyoming on Saturday. For US base rates to reach 4% early next year, an additional increase of at least 1.5 percentage points is needed from the current level of 2.25-2.5%.

“The Bank of Korea should continue to raise policy rates until inflation is brought under control,” Bank of Korea Governor Rhee Chang-yong said in an interview with Reuters on Saturday after taking part at the Jackson Hole meeting. “While the Bank of Korea started raising interest rates before the Fed, it will be difficult to stop it before the Fed.”

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