Do you have confidence in the economy?

Finance Minister Kim Dong-yeon brushed off concerns about the U.S. Federal Reserve’s move to raise its benchmark interest rate, saying the impact of the Fed’s decision on the Korean economy will be limited as the move had been widely expected.As per data made available, the previous rate hike by the U.S. central bank in May had a 0.77 per cent upward impact on the BSE Sensex, while the decision to hold rates in March was impacted by 0.64 per cent.The Fed also put out a statement about its plans to unwind its enormous bond portfolio, bought as part of its bid to restart the United States economy after the 2007-09 recession.While the hike was widely expected, some investors said the central bank’s tone was more hawkish and that raised concern about the pace of USA economic growth.Mortgage rates are closely related to yields on long-term government bonds, which appeal to investors any time uncertainty, or low inflation, is in the air.As the chart shows, yields in India, thanks to much lower inflation, a lower RBI policy rate and abundant liquidity, have been falling. The S&P 500 technology index ended down 0.5 percent, but well off its lows for the day.Art Cashin, the head of New York Stock Exchange floor operations for UBS, said he doubts the Federal Reserve will be able to raise interest rates again this year because of underlying weakness in the USA economy.Federal Reserve head Janet Yellen justified the decision by highlighting the resilience of the USA economy, which has been buoyed by a robust labour market.But they may still struggle to agree with the International Monetary Fund whether Greece should receive debt relief. “Notably, however, the Fed’s inflation outlook (was) lowered, reflecting a more moderated outlook that is expected to invite more scrutiny on their upcoming decisions”.The initial cap for the reduction of the Fed’s Treasuries holdings would be set at $6 billion per month, increasing by $6 billion increments every three months over a 12-month period until it reached $30 billion per month. So, we can now answer the question, what does the Fed think the new normal looks like? That spurred selling of real estate developers’ shares.CURRENCIES: The dollar rose to 109.75 from 109.57 yen.KEEPING SCORE: Japan’s Nikkei 225 stock index fell 0.2 percent to 19,838.86 and South Korea’s Kospi sank 0.6 percent to 2,358.66. Benchmark U.S. crude fell another 5 cents to $44.68 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price worldwide oils, rebounded, gaining 6 cents higher to $47.06 a barrel. It fell $1.73, or 3.7 percent, to settle at $44.73 a barrel in NY. The euro edged up to $1.1219 from $1.1217.