U.S. Fed hold rates at zero, but projects two hikes by end of 2023
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The Federal Reserve concluded a two-day meeting on Wednesday by keeping its benchmark interest rate unchanged at a range of zero to a quarter percent¡¦ the same rate that it has been at since March last year.
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benchmark interest rate ±âÁرݸ®
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However, the Federal Open Market Committee said eleven of its 18 members forecast at least two rate hikes before the end of 2023, with seven seeing a move as early as next year.
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Thirteen favored at least one rate hike by the end of 2023.
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When it comes to tapering, or slowing the purchases of 120 billion U.S. dollars of assets a month,
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Chairman Jerome Powell said the U.S. economy was not yet at point where tapering purchases is appropriate.
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Powell said the Fed will give advance notice before announcing a decision regarding tapering and that any decision will depend on the progress of the economic recovery.
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Responding to the Fed's meeting, South Korea's financial authorities said on Thursday they will closely watch any potential volatility in the financial market, and act accordingly.
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"As there are risk factors to the real economy and financial markets,
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such as a rise in international commodity prices, while caution over inflation and premature tapering remains, we will closely monitor related economic data and look to countermeasures."
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