Seoul, January 29 (NationPress) The ambiguity regarding the trajectory of the United States' monetary policy is likely to continue, despite the market's overall stability following the Federal Reserve's recent decision on interest rates, stated a senior official from the South Korean central bank on Thursday.

On Wednesday (U.S. time), the Fed opted to maintain its benchmark interest rate within the 3.5-3.75 percent range after three consecutive reductions since September. This decision will keep the disparity between the key rates of South Korea and the United States at approximately 1.25 percentage points for the foreseeable future, as reported by Yonhap news agency.

During a market assessment meeting, Bank of Korea (BOK) Deputy Governor Yoo Sang-dai remarked, "The press conference held by Fed Chair Jerome Powell, coupled with the timeline for his successor's nomination and other factors, could perpetuate uncertainty regarding the U.S. monetary policy direction."

He further noted, "With ongoing uncertainties surrounding U.S. tariff policies, worries about the fiscal integrity of major economies, and geopolitical risks, we must remain vigilant and closely monitor market trends."

In the same press conference, Powell stated that the U.S. economy experienced "solid growth last year and is entering 2026 on a strong foundation," while stressing that the Fed is "well-positioned" to adjust the policy rate in response to upcoming economic data.

In light of President Donald Trump's increasing attempts to influence the Fed, Powell defended the independence of the central bank, labeling it a common practice in every developed economy and democracy.

Given the Fed’s current position, the BOK is anticipated to sustain its prolonged pause on interest rates.

At its latest meeting earlier this month, the BOK maintained the key rate at 2.5 percent, marking the fifth consecutive decision to hold rates since July, aiming to bolster financial stability amid a weakening won and to manage inflationary pressures.

The interest rate difference between South Korea and the U.S. has been sustained since July 2022, and experts caution that an increasing spread could lead to foreign capital outflows and further depreciation of the Korean won.

The local currency has consistently traded below the crucial 1,400 won level, dipping to a multiyear low of under 1,480 won late last month, impacted by the strength of the dollar, geopolitical uncertainties, and substantial overseas investments by domestic investors.

On Thursday, the won opened at 1,429.6 per dollar, a decrease of 7.1 won from the previous session.