Seoul: Acting President Choi Sang-mok has called for heightened vigilance and sustained market monitoring amid increasing uncertainties related to U.S. monetary and external economic policies under the Donald Trump administration. This directive was issued during a macroeconomic meeting aimed at evaluating new U.S. government policies and the Federal Reserve's recent decision to maintain its benchmark interest rate following three consecutive cuts.
According to Yonhap News Agency, Choi emphasized the importance of remaining vigilant due to high external uncertainties linked to U.S. policy. He urged each agency to sustain a continuous, collaborative monitoring system of financial and foreign exchange markets. In addition, plans were announced for an investor relations session next month to highlight Korea's robust economic fundamentals and engage with global credit rating agencies to preserve its stable sovereign credit rating.
The meeting was attended by Bank of Korea Governor Rhee Chang-yong, along with heads of the Financial Services Commission and Financial Supervisory Service, who concurred on the necessity of closely monitoring market conditions amid recent volatilities in the U.S. and other major economies.
On the last day of the extended Lunar New Year holiday, the stock and foreign exchange markets remained closed. Despite former President Trump's advocacy for lower policy rates, Federal Reserve Chair Jerome Powell indicated that there is no urgency to alter the current policy stance, citing the economy's resilience.
The Federal Reserve's decision maintains a gap of up to 1.5 percentage points between South Korea's and the United States' key interest rates. Earlier this month, the Bank of Korea decided to keep its benchmark interest rate unchanged following a series of cuts driven by the weak local currency and uncertainties associated with the Trump administration. All six board members acknowledged the necessity of considering further rate reductions in the coming months to support economic growth.