Vice Prime Minister Choi Holds Financial Conference To Review The Impact Of The U.S. Federal Reserve’s Decision To Cut Interest Rates

Vice Prime Minister Choi Sang-mok held a “Macroeconomic and Financial Conference” on September 19, 2024 to review the impact of the U.S. Federal Reserve’s decision to cut interest rates and discuss ways to respond. The US Federal Reserve cut its policy rate by 50 basis points to 5.0% for the first time in four and a half years and expanded its outlook for further cuts this year and next.

While hailing this as a sign of recovery from the global complex crisis, Choi expressed caution over the possibility of further financial market volatility and geopolitical uncertainties. While assessing the domestic financial market as relatively stable, he said the government will maintain a 24-hour joint inspection system and take swift market stabilization measures if necessary.

He also emphasized that the government will focus on managing household debt and the real estate market, and will implement additional control measures if necessary. The government will also take advantage of the monetary policy shift in major countries to further stimulate domestic demand and stabilize people’s livelihoods.

Choi assessed that domestic demand constraints are easing due to stable inflation and declining market interest rates, and emphasized that the government will speed up domestic demand and livelihood recovery by supporting low-income earners and small businesses and revitalizing investment.

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