The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    N. Korea holds politburo meeting to discuss Kim-Putin summit: KCNA

  • 3

    30 people purchased 8,000 homes: data

  • 5

    BTS member Suga begins mandatory military service

  • 7

    Kim Jong-un's rejection of Russia's food assistance irritates North Korean defectors

  • 9

    National Assembly passes motion to arrest DPK chief

  • 11

    Gender equality minister nominee in hot seat over remarks on abortion

  • 13

    US striving to stop NK's potential weapons support to Russia 'wherever we can': Blinken

  • 15

    Top court upholds life sentence for woman over drowning husband for insurance money

  • 17

    Honey-dipped cookie to represent 'K-desserts' at global food expo in Germany

  • 19

    KG Mobility seeks breakthrough in Europe

  • 2

    Scientists find green way to turn CO2 into fuel with sunlight

  • 4

    BTS defies K-pop's 'seven-year curse'

  • 6

    BLACKPINK's contract renewal still in limbo

  • 8

    Rights experts from 17 countries demand release of North Korean escapees in China

  • 10

    Seoul invites ambassadors to introduce new halal foods in Korea

  • 12

    Yoon says arms deal between N. Korea, Russia would be 'direct provocation' against S. Korea

  • 14

    S. Korea condemns Russia, seeks to mend ties with China

  • 16

    COVID-19 deaths hit record high in Korea for 2022

  • 18

    Aespa's VR concert to hit theaters Oct. 25

  • 20

    Opposition party in turmoil as leader could be arrested on Tuesday

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
World
  • SCMP
  • Asia
Sat, September 23, 2023 | 20:40
US Fed lifts key interest rate amid banking sector fears
Posted : 2023-03-23 13:29
Updated : 2023-03-23 16:50
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
U.S. Federal Reserve Board Chairman Jerome Powell responds to a question from the news media during a press conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building in Washington, D.C., March 22. EPA-Yonhap
U.S. Federal Reserve Board Chairman Jerome Powell responds to a question from the news media during a press conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building in Washington, D.C., March 22. EPA-Yonhap

The U.S. Federal Reserve raised its benchmark lending rate on Wednesday, as it sought to strike a balance between curbing high inflation and averting further upheaval in the commercial banking sector.

The quarter-point increase, which was in line with expectations, lifted the target range to 4.75-5.00 percent at the end of a two-day policy meeting.

While the Fed has expressed commitment to lowering inflation, there have been concerns that higher rates could deepen banking sector turmoil following Silicon Valley Bank's (SVB) rapid collapse.

SVB, to meet liquidity needs, had to sell assets it had expected to hold to maturity and these had lost market value while rates increased.

In a statement on Wednesday, the Fed said recent banking sector developments "are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation."

The policy-setting Federal Open Market Committee (FOMC) added that "some additional policy firming may be appropriate" to get to a stance that is sufficiently restrictive to bring inflation down.

The latest increase was the same size as the central bank's previous rate decision in February, and marks its ninth straight rate hike.

It comes after two weeks of market turmoil and the collapse of three regional lenders.

Wednesday's decision underscores the Fed's determination to tackle inflation, which remains stubbornly above policymakers' long-term annual target of 2 percent despite an effort to lower price increases.

Depositors' savings 'safe'

The implosions of SVB and two other regional lenders pummeled banking stocks around the world last week, with Swiss investment bank Credit Suisse swallowed up by regional rival UBS after its shares sank to a record low.

Wall Street stocks faltered as Fed Chair Powell addressed reporters after the central bank's decision.

Korea to raise guard against market instability after Fed rate hike
Korea to raise guard against market instability after Fed rate hike
2023-03-23 09:57  |  Economy
Stocks fall, bond yields tumble after Fed's latest rate hike
Stocks fall, bond yields tumble after Fed's latest rate hike
2023-03-23 07:02  |  World
Bank deposits have stabilized in last week: Powell
Bank deposits have stabilized in last week: Powell
2023-03-23 07:15  |  World
Powell said depositors' savings in the banking system are safe, adding that the Fed is "prepared to use all of our tools as needed" to keep the system safe and sound.

He also said the Fed needs to boost supervision and regulation of banks, adding that SVB's management had "failed badly."

But "rate cuts are not in our base case," Powell added.

The combination of hot U.S. economic data at the start of the year and uncertainty in the banking sector had led most analysts to predict the Fed will continue with a more modest hiking cycle than was previously expected.

U.S. Federal Reserve Board Chairman Jerome Powell responds to a question from the news media during a press conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building in Washington, D.C., March 22. EPA-Yonhap
A trader reacts as Federal Reserve Chair Jerome Powell is seen delivering remarks on a screen, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 22. Reuters-Yonhap

More 'dovish' language

Treasury Secretary Janet Yellen said Tuesday that the U.S. banking sector was "stabilizing" after authorities stepped in to protect deposits following the failures of SVB and Signature Bank.


But she conceded that "similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion."

Yellen's comments underscored this week's relief rally in the stock markets, along with actions by the Fed and other major central banks to improve lenders' access to liquidity.

On Wednesday, the Fed also updated its economic projections, slightly lowering its 2023 GDP growth projections 2023 to 0.4 percent from 0.5 percent in December.

Median projections for the Fed's benchmark rate at the end of this year were unchanged, while inflation expectations rose slightly.

The Fed's announcement follows on the heels of the European Central Bank's decision last week to raise rates by 0.5 percentage points.

ECB chief Christine Lagarde warned on Wednesday that the eurozone's monetary policymakers "will still have ground to cover to make sure that inflation pressures are stamped out."

She said the recent banking turmoil could add to "downside risks" in the single currency area. (AFP)



 
miguel
Top 10 Stories
1Scientists find green way to turn CO2 into fuel with sunlight Scientists find green way to turn CO2 into fuel with sunlight
2Kim Jong-un's rejection of Russia's food assistance irritates North Korean defectors Kim Jong-un's rejection of Russia's food assistance irritates North Korean defectors
3Opposition party in turmoil as leader could be arrested on Tuesday Opposition party in turmoil as leader could be arrested on Tuesday
4Korea boosts subsidies to rev up falling EV sales Korea boosts subsidies to rev up falling EV sales
5Russia lodges protest to S.Korean envoy over Yoon's UN speech Russia lodges protest to S.Korean envoy over Yoon's UN speech
6Foreign employees rewarded for contribution to Korea's shipbuilding industry Foreign employees rewarded for contribution to Korea's shipbuilding industry
7Lawmakers want to grill business tycoons over decision to rejoin FKI Lawmakers want to grill business tycoons over decision to rejoin FKI
8Gov't reviews changing description of Fukushima wastewater Gov't reviews changing description of Fukushima wastewater
9'Songpyeon' for low-income families 'Songpyeon' for low-income families
10Saudi Arabia celebrates 93rd National DaySaudi Arabia celebrates 93rd National Day
Top 5 Entertainment News
1BLACKPINK's contract renewal still in limbo BLACKPINK's contract renewal still in limbo
2[INTERVIEW] Virtual K-pop group MAVE: is more than just pretty pixels INTERVIEWVirtual K-pop group MAVE: is more than just pretty pixels
3Hebrew University students travel to Korea to explore musical landscape Hebrew University students travel to Korea to explore musical landscape
4[INTERVIEW] Seoul's increased art market momentum brings Sotheby's back to Korea INTERVIEWSeoul's increased art market momentum brings Sotheby's back to Korea
5[INTERVIEW] 'Cobweb' director questions meaning of cinema INTERVIEW'Cobweb' director questions meaning of cinema
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group