Anchor: The U.S. Federal Reserve has handed down its final - and fourth - interest rate hike of the year, bringing the upper bound of the key rate to two-point-five percent. But what monetary policymakers here in Korea are watching is the pace of tightening in the new year, as the gap between the rates of the two central banks continue to widen. 
Kim Bum-soo has more. 
 
Report: 

[Sound bite: U.S. Federal Reserve Chairman Jerome Powell]
"Today we raised our target range for the short term interest rates by another quarter of a percentage point. After today's action, the target range for the federal funds rate is two and a quarter to two and a half percent... "

Announcing the fourth rate hike of the year Wednesday, Federal Reserve Chairman Jerome Powell noted the U.S. economy has been growing fast and its job market has continued to improve. 

The Fed's target range is up to point-75 percentage points higher than the benchmark rate in South Korea, which rose to one-point-75 percent last month.

A wider rate spread could lead to a capital outflow out of the Korean market. 

[Sound bite: U.S. Federal Reserve Chairman Jerome Powell]
"Many FOMC participants had expected that economic conditions would likely call for about three more rate increases in 2019. We have brought that down a bit, and now I think it is more likely that the economy will grow in a way that will call for two interest rate increases over the course of next year." 

The slower pace next year - down from three to two - is at least a relief for the Bank of Korea. It has been under pressure to catch up with the more profitable U.S. rate. 

Bank of Korea Governor Lee Ju-yeol on Thursday said the slower pace at the Fed will help the central bank here operate its monetary policy in a more flexible manner. 

Officials from the central bank, Finance Ministry and the Financial Services Commission held a meeting on Thursday to discuss ways to minimize the impact of the U.S. rate decision on the domestic economy.  
Kim Bum-soo, KBS World Radio News.