In the US, the stock market plunged as investment losses continued to pile up, while in Korea, the government still maintained a 'wait-and-see' stance on the government's 'expectation for price point'.
At an emergency macroeconomic and financial inspection meeting on the 13th, the government said, "The skeptical view of the global inflation peak theory has expanded." It increased volatility.”
The Financial Services Commission said, "The current economic and financial situation is a very difficult situation where high inflation continues, and geopolitical risks such as accelerated monetary tightening in major countries and the Ukraine crisis overlap," said Kim So-young, vice chairman of the Financial Services Commission. We will continue to monitor domestic and international financial market trends and risk factors through the system, and closely check related countermeasures in advance so that market stabilization measures can be implemented in a timely manner in response to market instability.” ' said.
On the 14th, President Yoon Seok-yeol said, "Inflation is due to factors that rise from the supply side." He said, "The government is trying to do everything the government can do on the supply side." The increase was excluded. In Korea, the inflation rate in May was 5.4% and the US's 30% of the cost of living alone combined the 8% inflation rate, so it was 8.6% in May of the United States.
US CPI rose to 8.6% in May from 8.3% in April, and the core consumer price excluding energy and food fell to 6.0% in May from 6.2% in April.
In the US, energy and food account for 22% of consumer prices, housing costs 32%, and services 60%.
"The US stock market continued its sharp decline on the 14th as investment losses continued to pile up, creating economic pain for many Americans caught between rising gas prices and declining investment accounts," the Washington Post said. The Nasdaq Composite Index, which focuses on technology stocks, fell 4.7%. The Dow Jones Industrial Average fell 2.8%. Each index is falling sharply in 2022, and there is no clear indicator of when the market will be able to stabilize.”
The yield on the 10-year U.S. Treasury bond rose 0.28%p from the previous trading day to 3.43% on Black Monday on the 14th.
On the 10th, when the Consumer Price Index was announced, the 10-year government bond yield surged 0.11%p from the previous day to 3.15%, heightening anxiety.
Compared to the beginning of the year, the S&P 500 of the US stock market has fallen 21% from its peak on the 14th, confirming entry into a US-style bear market.
The Korean government is sticking to the continuation of the economic stimulus policy in the future entry into price stability, as the US inflation depends on the “peak in May”.
The US held the Federal Open Market Committee (FOMC) for June on the 14th and 15th, and the probability of a 0.75%p hike in interest rates has risen sharply and even 1%p has been raised.
On the 13th, the dollar index, which is valued in dollars against the world's six major currencies, including the yen, the euro and the British pound, rose 0.6%, recording the highest level since December 2002 at 105.4.
The won/dollar exchange rate surged from the beginning of the market on the 14th and broke through the high point, opening at 1,291.5 won, up 7.5 won from the previous day's closing price, and then raising the high to 1,292.5 won right after the opening.
On the 14th, Deputy Prime Minister Choo Kyung-ho said, "The economy is psychology after all." “From now on, the great economic war to overcome the complex economic crisis, strengthen the economic constitution, and create an economy that leaps forward again begins,” he said.