Finance Minister Choi Sang-mok said Thursday the government will work closely with the Bank of Korea and swiftly take market stabilization measures if necessary, as the U.S. Federal Reserve cut its interest rates for the first time in over four years.

“Following the Fed’s monetary policy pivot, the market is moving away from a complex global crisis, which was triggered by excessive liquidity supplied to cope with the pandemic, as well as shocks to the global supply chain caused by the war between Russia and Ukraine,” Choi said.

“Overnight, the global financial markets remained relatively stable as expectations of a large rate cut were already reflected,” Choi added.

The finance minister said the government will operate a monitoring system on the global market with related institutions amid lingering overseas uncertainties and implement contingency plans when necessary.

South Korea will also continue to thoroughly monitor household debt and other risks in the property market, the minister added.

“On the
back of the transition in the monetary policies of major countries, the government will also speed up efforts to revitalize domestic consumption and stabilize the livelihoods of the people,” Choi said.

The Fed’s new median economic projections showed that the federal funds rate could be cut to 4.4 percent by the end of this year — a hint that the Fed may further lower the rate later this year.

Finance Minister Choi Sang-mok speaks during a meeting in Seoul on Sept. 19, 2024, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)

Finance Minister Choi Sang-mok speaks during a meeting in Seoul on Sept. 19, 2024, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)

Source: Yonhap News Agency