Powell’s “Inflation Patience”, the fluctuating financial market

U.S. Treasury yields surge, stock market plunges
Entered the KRW 1130 exchange rate

[이미지출처=로이터연합뉴스]

[아시아경제 뉴욕=백종민 특파원, 황준호 기자] Fed President Jerome Powell’s disappointing remarks panicked global financial markets. After the US Treasury bond rate surged again and the New York Stock Market crashed, Asian markets such as Korea are also fluctuating. The won-dollar exchange rate soared.

Chairman Powell said at a video seminar hosted by the Wall Street Journal (WSJ) on the afternoon of the 4th (local time) that inflation concerns could be tolerated. “There is inflationary pressure due to the economic resumption, but it is temporary. We will be patient,” said Powell. This remark was perceived as the Fed’s intention to tolerate recent inflation. On the other hand, there was no remark to subdue inflation concerns.

The anxiety sentiment was reflected in the market intact. The 10-year Treasury bond yield, which remained at 1.4% this morning, soared to 1.54% in an instant. As of 30 years in the US, the interest rate on mortgage loans has exceeded 3%.

Major indices in the New York Stock Market reversed all at once. The Nasdaq Index, which was most affected by the interest rate surge, fell 3% during the intraday and ended at a 2.11% decline.

On the 5th, the won-dollar exchange rate exceeded 1130 won during the intraday. It is the first time since November 5 last year (1133.9 won, a market high) that the won-dollar exchange rate reached 1130 won during the intraday. As of 10 am on the day, the won-dollar exchange rate is trading at 1131.82 won, up 6.72 won from the previous day’s closing price.

New York = correspondent Baek Jong-min [email protected]
Reporter Hwang Joon-ho [email protected]