Yoo Sang-dae, deputy governor of the Bank of Korea, noted that "the volatility of the U.S. stock market during the holiday period has significantly increased, particularly in the information technology (IT) institutional sector, and we need to closely monitor the domestic ripple effects."
On the 31st, Deputy Governor Yoo said at the "Market Situation Review Meeting Related to the Lunar New Year Holiday and U.S. Federal Open Market Committee (FOMC) Results" that "the impact of this FOMC result was not significant as it was assessed at the expected level."
He assessed that "the influence of major countries' monetary policy decisions, including the U.S. Federal Reserve (Fed), was limited in the international financial market; however, the concerns over overspending on artificial intelligence (AI) by major big tech corporations and uncertainties related to the new government's tariff policy in the U.S. have heightened global risk-averse sentiment."
He added that "we need to monitor the domestic ripple effects and that uncertainties related to the timing and pace of interest rate cuts, the economic policy promotion of the new U.S. government, and domestic political conditions remain high. We will cautiously examine the developments and impacts of related risk factors."