Federal Reserve Chairman Jerome Powell has hinted that bond purchases will be curtailed and the pace of tapering will increase.
After Powell’s remarks, New York’s major indexes all fell more than 1%.
This is reporter Kim Jin-ho’s report.
Chairman Powell pointed out during the Senate Financial Committee hearing that the emergence of new COVID-19 mutations could increase uncertainty.
[제롬 파월 / 미국 연방준비제도 의장 : 최근의 코로나19 확진자 증가와 오미크론 변이의 출현은 고용과 경제활동을 하락시키는 위험을 야기하고 인플레이션에 대한 불확실성을 높일 수 있습니다.]
In November, through the Federal Open Market Committee (FOMC), the Fed decided to reduce the amount of quantitative easing, which provides liquidity directly to the market through bond purchases, from $120 billion per month to $15 billion per month in November and December only.
However, concerns about inflation are growing, as the Consumer Price Index for October, announced later, surged 6.2% from the same month of the previous year.
Chairman Powell said the US economy is currently very strong and inflationary pressures are high.
[제롬 파월 / 미국 연방준비제도 의장 : 최근 몇 달간 물가 상승이 경제 전반으로 훨씬 더 광범위하게 확산돼 인플레이션 위험이 높아졌다고 생각합니다.]
Chairman Powell hinted at speeding up the pace of tapering when he said at a regular meeting of the Federal Open Market Committee (FOMC) in December that he might need to discuss whether it would be appropriate to end the tapering months earlier.
Chairman Powell’s remarks mean that after next year, they will cut their purchases by more than $15 billion a month to end the tapering sooner rather than later.
The New York stock market, which started mixed in the aftermath of the Omicron mutation, fell in all three major indices after Chairman Powell’s remarks.
The Chicago Options Exchange’s volatility index, also known as the Wall Street Fear Index, has soared, showing that investor sentiment is shrinking.
This is YTN Kim Jin-ho.
YTN Jinho Kim ([email protected])
[저작권자(c) YTN & YTN plus 무단전재 및 재배포 금지]