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Fed rate measures weigh on key US ally

Fed rate measures weigh on key US ally


October 23, 2023, 12:02 a.m. ET

South Korea’s alliance with the United States has strengthened under the Biden presidency. But the country’s economy has been a victim of rapidly rising U.S. interest rates, showing how the Federal Reserve’s decisions – and the uncertainty surrounding them – can have repercussions around the world.

The Fed has embarked on a historic wave of interest rate hikes since the start of 2022, aiming to rein in inflation that peaked at 9.1% in the middle of last year. Central banks around the world have followed these measures, in part out of a desire to protect their currencies, which may suffer from rising Treasury yields that encourage international investors to dump their foreign assets and buy U.S. bonds.

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Eleon

With a penchant for words, Eleon Smith began writing at an early age. As editor-in-chief of his high school newspaper, he honed his skills telling impactful stories. Smith went on to study journalism at Columbia University, where he graduated top of his class. After interning at the New York Times, Smith landed a role as a news writer. Over the past decade, he has covered major events like presidential elections and natural disasters. His ability to craft compelling narratives that capture the human experience has earned him acclaim. Though writing is his passion, Eleon also enjoys hiking, cooking and reading historical fiction in his free time. With an eye for detail and knack for storytelling, he continues making his mark at the forefront of journalism.
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