Prediction of Fed Policy
Bank of Korea Governor Kim Choong-soo remarked that the quantitative easing of the United States is likely to slow down through the Federal Open Market Committee (FOMC) meeting this month.
“The US and Europe are said to extend the quantitative easing only when special circumstances arise,” he said at the discussion session with the CEOs of small firms held on September 4 at the main office building of the central bank. He continued, “As such, it seems that the Fed is heading in the direction of contractionary monetary policy.”
There, he emphasized that small and mid-size enterprises have to take a pivotal role in the real economy, mentioning, “Every time a global financial crisis broke out, we’ve witnessed imbalances on the real economy side.” The governor added, “SMEs may feel some burden for financial regulations as of late, and the importance of the changes in international business environments is on the rise for not just exporters and importers, but also domestic market-oriented companies.”