U.S. Fed cuts key rates for third time by 0.25 percentage points; BOK says rate cut meets expectations

As widely expected,... the U.S. Federal Reserve has cut interest rates for the third time this year.South Korea's central bank said the move somewhat removes uncertainties for both the Korean and global economies.Yoon Jung-min reports.By a vote of 8 to 2,... the U.S. Federal Reserve decided to lower its benchmark funds rate by 25 basis-points to between 1-point-5-percent and 1-point-seven-five percent.That's the third cut this year.Despite solid job gains and strong household spending,... the Fed saw the rate cut as necessary due to the slowing U.S. economy, mostly affected by the ongoing trade dispute with China and weak global growth."We took this step to help keep the U.S. economy strong in the face of global developments and to provide some insurance against ongoing risks."Speaking to reporters, Fed Chairman Jerome Powell said the central bank would hold rates steady for "the foreseeable future",... given the Fed's economic outlook of moderate economic growth, a strong labor market, and inflation growing at around two-percent.According to the U.S. Commerce Department,... the U.S. economy grew 1-point-9 percent in the third quarter.On Wednesday, stocks rose following the third rate cut and the expectation that there would be no rate hikes for the time being.The S&P 500 hit an all-time high,... and the Dow Jones Industrial Average and Nasdaq went up some zero-point-3 percent.South Korea's KOSPI and KOSDAQ also saw a rally during trading on Thursday.In the meantime, the Bank of Korea said the U.S. rate cut generally met market expectations.BOK senior deputy governor Yoon Myun-shik said the Fed's rate cut helps remove some market uncertainty and will help support global growth,... having a positive effect on the local economy as well.He added that the rate cut helps somewhat remove concerns over a possible capital outflow from the country.When it comes to another rate cut by the Bank of Korea within the year,... the deputy governor said the bank will consider external conditions as a whole,... not just the Fed's decision.Currently, the Bank of Korea's key interest rate is at an all-time low of 1-point-25 percent, lower than that of the U.S.Yoon Jung-min, Arirang News.