Fed Charge Strikes Squeeze a Key U.S. Ally

South Korea’s alliance with the U.S. has strengthened through the Biden presidency. However the nation’s financial system has fallen sufferer to the fast rise in U.S. rates of interest, displaying how Federal Reserve selections—and the uncertainty round them—can ship ripples world wide.

The Fed has launched into a historic spree of interest-rate rises since early 2022, an try and rein in inflation that peaked at 9.1% in the course of final 12 months. Central banks throughout the globe have adopted these strikes, partly out of a want to guard their currencies, which may undergo as rising Treasury yields encourage worldwide buyers to dump abroad property and purchase U.S. bonds.