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BOK Chief: US Fed Meeting Hints at Possible Rate Cut

Written: 2019-06-20 10:33:49Updated: 2019-06-20 11:42:09

BOK Chief: US Fed Meeting Hints at Possible Rate Cut

Photo : YONHAP News

Bank of Korea Governor Lee Ju-yeol has assessed that the U.S. central bank sent a signal for a possible rate cut this year.

The Federal Open Market Committee(FOMC), the policy-setting body of the U.S. Federal Reserve, on Wednesday kept the key rate in the range of two-point-25 to two-point-five percent.

But it said "uncertainties about this outlook have increased" and that the Fed "will act as appropriate to sustain the expansion."

Regarding the FOMC meeting, the BOK chief told reporters on Thursday that it hinted they are leaning towards monetary easing and that the market is now seeing a larger possibility of rate cuts by year's end.

Lee cited that eight of the 17 FOMC members saw the need to cut rates this year. 

The closely-watched Fed statement included a marked shift from previous language, with the central bank no longer saying it would remain "patient" in assessing economic data.

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