BOK sees rising uncertainty in U.S. monetary policy path after new Fed chair

▲ Bank of Korea Senior Deputy Gov. Ryoo Sang-dai (Yonhap)

central bank-US monetary policy

BOK sees rising uncertainty in U.S. monetary policy path after new Fed chair

SEOUL, April 30 (Yonhap) -- Uncertainty over the future path of U.S. monetary policy under the next Federal Reserve chair, Kevin Warsh, has increased further amid rising oil prices and inflation, the Bank of Korea said Thursday.

"Overnight at the Federal Open Market Committee (FOMC), opinions within the Fed were significantly divided, and inflation driven by rising oil prices was emphasized," BOK Senior Deputy Gov. Ryoo Sang-dai said during a meeting to review market conditions.

"Uncertainty regarding the future path of U.S. monetary policy is assessed to have increased further following the upcoming inauguration of the next Fed chair," he added.

The U.S. central bank held its benchmark interest rate steady for the third consecutive time at its rate-setting meeting Wednesday (U.S. time).

The decision was highly contentious, with four officials dissenting -- the highest number of dissents at a single meeting since 1992.

"Concerns are growing that the war in the Middle East could persist due to difficulties in negotiations between the U.S. and Iran," Ryoo said. "We will closely monitor the developments of domestic and external risk factors and their resulting financial and economic impacts, and respond promptly when necessary."

The meeting marked the last to be presided over by Fed Chair Jerome Powell, who is set to be replaced by Warsh following a full Senate confirmation vote next month.

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