South Korea to monitor financial markets after US rate freeze

South Korea’s finance ministry said it will closely monitor financial markets following the US Federal Reserve’s decision to keep interest rates unchanged, citing persistent global trade uncertainties. At a macroeconomic meeting chaired by Acting Finance Minister Kim Beom-suk, officials noted that global markets remained broadly stable after the Fed held its benchmark rate at 4.25%-4.5% for a third straight time, amid rising employment and inflation concerns in the US. The ministry said it will hold weekly economic reviews to quickly respond to risks including a potential US recession, escalating trade tensions with China, and Washington’s tariff policies. Authorities also plan to track foreign exchange volatility, following a sharp rise in Asian currencies last week, to guard against destabilising capital flows.