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Finance Minister Choo Kyung-ho speaks during an emergency economic meeting in Seoul, Dec. 15. Yonhap |
The U.S. Federal Reserve's latest interest rate hike was in line with market expectations, but uncertainty still remains high over high inflation and an economic downturn, Seoul's finance chief said Thursday.
Finance Minister Choo Kyung-ho made the remarks during an emergency macroeconomic meeting with Bank of Korea (BOK) Gov. Rhee Chang-yong and top financial regulators after the Fed slowed the pace of its rate hike to a half-point Wednesday (U.S. time) from its previous 75 basis point increases.
"The rate hike this time did not miss the market expectations. Volatility in the global financial market appears to have been limited overnight, but it remains to be seen how it will unfold down the road," Choo said.
U.S. shares fell after the Fed's decision. The Dow Jones Industrial Average declined 0.42 percent, and the tech-heavy Nasdaq Composite lost 0.76 percent.
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