Korea Economic Daily

◆ Fed freezes interest rate at 4.25~4.50%... Seems mindful of Trump's 'trade war' effects The U.S. Federal Reserve (Fed) emphasized uncertainty about the economic outlook and kept its benchmark interest rate unchanged again on the 19th (local time).

US GDP growth rate this year 2.1→1.7% Core inflation 2.5→2.8% Suggests increasing possibility of stagflation FOMC members expecting no rate cuts this year Increased from 1 to 4 members... inflation risks perceived more seriously than before There are

Markets Watch Fed's US Economic Outlook Amid Expected Rate Hold Nvidia and Tesla Rebound U.S. stock markets opened higher on the 19th (local time) as investors await the Federal Reserve's interest rate and economic outlook announcement. As of 10 a.m.

March Interest Rate Maintained at 0.5% Annually The Bank of Japan kept its benchmark interest rate unchanged at 0.5% annually on the 19th, as market expected. However, it hinted at the possibility of additional rate hikes. Bank of Japan Governor Kazu

The Constitutional Court did not announce the date for President Yoon Suk Yeol's impeachment trial ruling on the 19th. This has led to observations that the ruling will effectively be postponed until next week. A Constitutional Court official told mu

### **Bessent: "Varies by Country - Also Includes Non-Tariff Barriers"** ### **Interpretation Suggests Possibility of Negotiations Until April 2**  US Treasury Secretary Scott Bessent revealed that regarding the reciprocal tariffs scheduled fo

The Bank of Japan maintained its benchmark interest rate at 0.5% annually on the 19th. Having raised the rate by 0.25% points in January, the decision reflects the need to further monitor the impact on the economy and prices. Concerns about downside

The New York stock market fell as caution was triggered ahead of the Federal Reserve's (Fed) benchmark interest rate decision. On the 18th (local time), the Dow Jones 30 Industrial Average closed at 41,581.31, down 260.32 points (-0.62%) from the pre

◆New York stock market falls again ahead of US interest rate decision The New York stock market fell again overnight ahead of the Federal Reserve's benchmark interest rate decision. In the early hours of today, the Dow Jones 30 Industrial Average on

US Economist's Column Warns "Reciprocal Tariffs Will Lead to Trump's Downfall" "When Average Tariffs Reach 20%, US Inflation Will Rise to 4%" A US economist has warned that if Trump implements reciprocal tariffs as planned in April, it could become a

US Treasury Secretary Bessent: "Will Also Provide Opportunity for Negotiations to Avoid Tariff Barriers" US Treasury Secretary Scott Bessent announced on the 18th (local time) that the Trump administration will present tariff rates calculated based o

Significant Impact from Rising Fuel Prices Data suggesting inflation impact has been added as import prices in February rose more than expected due to increasing fuel prices. On the 18th (local time), the US Department of Labor announced that US impo

Suggests sanctions on US pension funds investing in China "Must prevent US money from leading to China's military enhancement" "Some Chinese companies may not be able to trade on US stock markets" Reciprocal tariffs, different tariff rates by country

### **Gold prices and oil prices rise due to Israel's Gaza attack** ### **Economic indicators interpreted as signs of economic slowdown**  On the 18th (local time), the US stock market is extending its decline as Middle East tensions rise amid

US Stock Allocation Reduced to 23%, Replaced with European Stocks "S&P500 Can Reach 6,000p Only If Trade War Concerns and Inflation Ease Global fund managers reduced their exposure to US assets by about 40%p in March, recording the largest monthly de

Civilian Death Toll Exceeds 330 Hamas Protests "Breach of Negotiations" Israel has launched massive airstrikes on the Gaza Strip. The Palestinian militant group Hamas protested, claiming that Israel unilaterally breached the ceasefire agreement. Conc

As Wemade's cryptocurrency WEMIX suffered a 9 billion won hacking attack, attention is focusing on the blockchain security systems of Korean game companies. This comes at a time when expectations were building that blockchain could become a notable p

Despite 33% stock price drop in a month Tesla ranks 1 in weekly net purchases by Korean overseas stock investors "Simple low-price buying should be approached with caution" Despite Tesla's poor stock performance, Korean individual investors in overse

Bithumb announced on the 18th that it will operate a dedicated counter for KB National Bank account opening at the Bithumb Lounge on Gangnam-daero in Seoul. This follows the change of the real-name account partnership bank from NH Bank to KB National

Retail sales figures fell short of expectations Major indices in the New York stock market rose for the second consecutive trading day as bargain hunting inflows increased. On the 17th (local time), the Dow Jones 30 Industrial Average closed at 41,84

### **Treasury Secretary Bessent's Comments Also Negatively Impact the Market**  On the 17th (local time), the US stock market initially fell as February retail sales increased less than expected and manufacturing indices showed weakness, but

Manufacturing Index Falls 26 Points, Price Indicators at Highest in 2 Years "Policy Uncertainty Burdens Manufacturing Sector" New York State's March manufacturing activity index has fallen to its lowest level since early 2024. Meanwhile, price indica

Reflecting Concerns about Vulnerability to Trump-driven Trade Tensions U.S. Growth Also Lowered to 2.2% This Year, 1.6% Next Year The OECD has lowered South Korea's growth forecast for this year from 2.1% to 1.5%, a 0.6 percentage point reduction. It

### **Interpreted as "Trump Administration Unlikely to Take Market Stimulation Measures"** ### **US Consumer Sentiment Decline Amid Trade War Concerns Also Casts Shadow on Market**  US Treasury Secretary Scott Bessent emphasized that while Wal

The Organization for Economic Cooperation and Development (OECD) has downgraded South Korea's economic growth rate for this year from 2.1% to 1.5%. This is the result of the global economy falling into a 'zero hour' situation due to US President Dona

US Pushing Tariffs to Revive Manufacturing Weak Dollar Essential for Manufacturing Revival EU's Expanded Military Spending and China's Economic Stimulus Also Encouraging a Weaker Dollar Global investors are growing increasingly anxious as the value o

Shin Hyunbo, Hankyung.com reporter greaterfool@hankyung.com