■ Host: Anchor Lee Jeong-seop, Anchor Jo Ye-jin ■ Guest: Professor Lee Jeong-hwan, Hanyang University College of Economics and Finance The text below may differ from the actual broadcast content. For more accurate information, please check the broadcast. When quoting, please indicate [YTN News START]. [Anchor] We deliver the latest economic news quickly and kindly. Start Economy, today we are with Professor Lee Jeong-hwan from Hanyang University College of Economics and Finance. Welcome. Let’s start with the news of the US interest rate cut that came out this morning. Following September and November, they cut it again this time. [Lee Jeong-hwan] Since the consumer price index in November met market expectations, expectations that they would cut interest rates this time were perfectly formed. The actual forecast was also over 98% that they would cut interest rates by 0.25%. As you can see, the expectations came true. But more importantly, there is something called a dot plot that comes out every quarter. A dot plot is what the Fed members think the economy will be like next year. There is a table that predicts things like interest rates, consumer price index, and growth rates, and I was very interested in this. The reason is that Chairman Powell has been talking about the US economy being good recently, and the fact that the US economy is good means that there is high demand, and the fact that there is high demand means that prices are likely to rise. What I mean by that is that there were discussions among people that interest rates would be higher next year than in September, or in other words, that the rate cut in 2025 would be smaller. However, this FOMC decision can be seen as the realization of those discussions. In September, it was predicted that the US interest rate would be cut four times next year, and that the final US base rate would be around 3.4%, but in this dot plot, it was reduced to two, and the prediction was 3.9%. The biggest reason is that since the economy is good, there is an expectation that the price index will not fall, and in the case of consumer spending, PCE, it is expected that next year’s inflation will not decrease that much since it is set at 0.4% higher than before. So, there are opinions that there seems to be a little more upward pressure than downward pressure on prices, and there are many predictions that the speed of interest rate cuts will slow down. The economic growth rate and unemployment rate were also raised by 0.1% to reflect the positive economic situation, and the unemployment rate was lowered by 0.1% to 4.1%. That means that consumption is not shrinking as much as expected and inflation pressure is considerable, and that was Chairman Powell’s continuous statement that the speed of interest rate cuts next year will be reduced a little, and it seems that this is what was discussed in the market. [Anchor] What specific impact will the US Federal Reserve’s decision to cut interest rates have on our market? [Lee Jeong-hwan] Since the interest rate cut itself was expected, I think you can think of it as not being a big issue. As I mentioned earlier, I think you can think of the dot plot as an issue. If the US base interest rate falls less, the US strong dollar trend is bound to become stronger. A high US base interest rate means high demand for US dollar assets, and high demand for dollar assets... (omitted) ▶ Original article: https://www.ytn.co.kr/_ln/0102_202412... ▶ Report: https://mj.ytn.co.kr/mj/mj_write.php ▣ Subscribe to YTN YouTube channel: http://goo.gl/Ytb5SZ ⓒ YTN Unauthorized reproduction, redistribution, and use of AI data are prohibited.