Anchor: U.S. Federal Reserve Board Chair Janet Yellen said Tuesday that the Fed needs to “proceed cautiously” in lifting interest rates. Her remark appears to be shutting down rumors that the U.S. could raise its key interest rate next month. Following Yellen’s remarks, the benchmark Korea Composite Stock Price Index(KOSPI) smoothly jumped over the two-thousand point level for the first time this year. 
Our Bae Joo-yon has more.
 
Report: As usual, the U.S. Federal Reserve Board(FRB) Chair Janet Yellen focused on the date for raising the U.S.’s key interest rate when she delivered a speech at the Economic Club of New York on Tuesday.
 
On recent claims by some Federal Reserve bank presidents that the board will carry out its first interest rate hike of this year next month, Yellen called for moving slowly.
 
[Sound bite: US Federal Reserve Board Chair Janet Yellen (English)]
“Given the risks to the outlook, I consider it appropriate for the Committee to proceed cautiously in adjusting policy.”
 
She said that inflation, a precondition for an interest rate hike, was unsatisfactory, citing that the Federal Open Market Committee’s two percent objective concerning inflation has yet to be met.
 
Yellen said external factors, including China’s economic slowdown and low global oil prices, also continue to be risk factors. However, she had optimistic views about the U.S. economy.
 
[Sound bite: US Federal Reserve Board Chair Janet Yellen (English)]
“I anticipate that the overall fallout for the U.S. economy from global market developments since the start of the year will most likely be limited.”
 
Yellen’s remarks suggest that the U.S. will carry out an interest rate hike in June as expected earlier, rather than next month.
 
Following the Fed chair's speech, the benchmark Korea Composite Stock Price Index(KOSPI) jumped over the two-thousand point threshold for the first time this year.
 
The KOSPI advanced seven-point-23 points, or zero-point-36 percent on Wednesday, to two-thousand-two-point-14. The tech-heavy KOSDAQ also closed up four-point-63 points, or zero-point-67 percent, to 691-point-13.
 
On the foreign exchange market, the value of the local currency depreciated 13 won against the U.S. dollar to one-thousand-150-point-eight won, the lowest figure in four months.
Bae Joo-yon, KBS World Radio News.