We start this morning with the Federal Reserve's decision to hike U.S. rates to their highest level in a decade.<br />The move is the Fed's first major decision under its new chairman Jerome Powell. <br />For more on the hike and the impact it could have, Lee Seung-jae reports.<br /> <br /> In the U.S. central bank's first major decision under its new Chairman Jerome Powell on Wednesday,.... the Federal Reserve hiked its key interest rate from one-point-five percent to one-point-seven-five percent,... the highest level since 2008. <br />It was the sixth rate increase since the Federal Open Market Committee began raising rates off near zero in December 2015.<br />The move was widely expected as the U.S. economy continues to strengthen and Wall Street remains near record highs.<br /><br /> " The job market remains strong, the economy continues to expand, and the inflation appears to be moving toward the FOMC's 2 percent longer-run goal."<br /><br /> In addition,... three rate hikes are anticipated for this year,... but the Fed will pick up the pace even further in 2019.<br /> The Federal Reserve also significantly boosted its forecast for U.S. growth for 2018 and 2019.<br />It says the U.S. economy is on pace to expand two-point-seven percent this year,... and two-point-four percent the following year. <br /> The growth, according to Fed officials, will help lower the unemployment rate in the U.S.<br />The jobless rate is expected to fall from four-point-one percent to three-point-eight percent this year,... and to three-point-six percent in 2019,... which would be the lowest level since 1969.<br /> The Fed's move also means U.S. rates will be higher than South Korea's for the first time in more than ten years.<br />The Bank of Korea currently has the nation's benchmark interest rate at one-point-five percent.<br />Speaking on Wednesday at his confirmation hearing for a second term as BOK governor,... Lee Ju-yeol said the country could face serious problems if the gap between the two widens too much.<br /> Lee added that, if Korea raises rates to stay on par with the U.S., it could cause major issues in a country where households are saddled with a record one-point-three trillion U.S. dollars of household debt as of last year.<br /> With the Federal Reserve gearing up for three more rate hikes before the year is out, global market analysts are closely monitoring their impact on the fragile global economy recovery.<br />Lee Seung-jae, Arirang News. <br />
