'Quantitative easing (QE) tapering premature'
By Lee Kyung-min
The Bank of Korea will have room for monetary policy easing following the continued ultra-dovish stance expressed by the U.S. Federal Reserve (Fed), last week.
The Fed held its top policy-making committee meeting Jan. 26 and 27 (local time) to decide how best to navigate increasing challenges brought on by the COVID-19 pandemic amid a dimmer short-term economic outlook.
A notable factor in a possible policy stance shift was a change in the composition of the Federal Open Market Committee (FOMC), as four of the committee members are replaced each year. The four new voting members ― San Francisco's Mary Daly, Chicago's Charles Evans, Atlanta's Raphael Bostic and Richmond's Thomas Barkin ― are reportedly more dovish compared to the presidents of the Minneapolis, Philadelphia, Dallas and Cleveland Fed banks that they replace. Cleveland's Loretta Mester, Minneapolis' Neel Kashkari, Dallas' Robert Kaplan, and Philadelphia's Patrick T. Harker will not vote on policy this year, but will still attend FOMC meetings and participate in policy discussions.