South Korea and the United States held their first “2+2” meeting of finance and monetary policymakers on the sidelines of the G20 finance ministers’ meeting in Bangkok, aiming to strengthen coordination on external uncertainties. Finance Minister Lee Hyoung-il and Bank of Korea Governor Shin Hyun-song met Federal Reserve Chair Kevin Warsh and U.S. Deputy Treasury Secretary Francis Brooke to discuss recent economic developments and ways to boost bilateral cooperation. U.S. Treasury Secretary Scott Bessent did not attend. A finance ministry official said the framework would help the two countries address external financial uncertainties promptly and effectively, and it was Lee’s first overseas trip as minister since taking office last month.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on morungexpress.com ↗
Keywords
FedKevin WarshSouth Koreacentral bank
Open a keyword to see other news on the same topic.
Related news
- S Korea , US hold first 2+2 meeting of finance , monetary policymakers
South Korea and the United States held their first '2+2' meeting of finance and monetary policymakers on the sidelines of the G20 finance ministers' meeting in Bangkok, aiming to strengthen coordination in responding to external uncertainties, the Ministry of Finance and Economy said. Finance Minister Lee Hyoung-il and Bank of Korea Governor Shin Hyun-song met with Federal Reserve Chair Kevin Warsh and Deputy Treasury Secretary Francis Brooke on Friday to exchange views on recent economic developments and bilateral cooperation. Lee called the meeting meaningful, as it was the first time senior officials from both countries' finance and monetary authorities met together. Treasury Secretary Scott Bessent did not attend, but Under Secretary Erin Browne said the parties discussed ways to strengthen economic and financial cooperation.
- Commentary : The Nobel Prize in economics is a message to the Fed
The Royal Swedish Academy of Sciences awarded the Nobel Prize in economics to Michael Woodford and Robert Hall, whose work helped establish forward guidance at central banks. The commentary contrasts this with Fed Chair Kevin Warsh, who has cut the size of post-meeting statements, shortened press conferences, declined to explain the Fed's reaction function, and declined to participate in the Summary of Economic Projections. Woodford's research shows communication lets markets price in policy in advance, as seen in the Fed's 2003 sentence that policy accommodation could be maintained for a considerable period, when the funds rate was 1% and 10-year yields had not responded. Under Ben Bernanke, guidance extended to mid-2013, which Woodford criticized for its 'fine print' escape hatches; he proposed a nominal GDP target, and the Fed moved toward a threshold target in late 2012. With inflation above the 2% target for six years, the author argues the SEP should be improved, such as by linking individual policymakers' rate projections to their forecasts rather than focusing on the median.
- EDITORIAL: The art of economic policy
The editorial examines the research of this year's Nobel economics laureates, Robert E. Hall and Michael Woodford, which shows that stabilization policy depends on household and firm expectations as well as how central banks communicate with the public. Hall found that spending depends on expectations of one's financial situation rather than only current income, and that lower-income households spend a larger share of income gains, so targeted support could be more effective. Woodford found that firms set prices based on future costs and competitors' prices, and his work provided the basis for the forward guidance used by many central banks. The editorial argues this research is valuable for central banks and Taiwan's policymakers, and that it contradicts Federal Reserve Chair Kevin Warsh's plan to end forward guidance and shorten post-meeting statements and news conferences.
- Analysts forecast BOK to hold benchmark rate unchanged at upcoming meet
A Yonhap survey of six economists found all expect the Bank of Korea to hold its benchmark rate at 3 percent at Thursday's meeting, after hikes in July and August. They cite the need to assess the effects of earlier increases, core inflation easing to 2.8 percent in September from 3.4 percent, and the won holding around 1,330 per U.S. dollar. All six nonetheless expect another hike in November, as inflation stays well above the 2 percent target amid robust semiconductor exports and high oil prices. Governor Shin Hyun-song signaled a possible pause but reaffirmed a hawkish stance, saying inflation would remain above target for a considerable period.
- Will the Fed Raise Rates This Month ? Here What Markets Say .
Consumer prices rose 3.7% year over year in September and 0.6% from August, while core inflation was 2.6% annually and 0.3% monthly, all above forecasts. The article says the data points to a second consecutive Fed rate hike at its Oct. 27-28 meeting, but futures traders put an 85.1% chance on rates staying at 3.75% to 4%, with a 74.1% chance of a hike when the Fed meets in early December. The two-year Treasury yield has eased from 4.93% to 4.73% but remains above the current rate, and futures traders see a 65% chance of at least three quarter-point hikes by the end of 2027, taking the rate to 4.5% to 4.75%. Research by Charles Schwab and others suggests stocks perform better when the Fed raises rates slowly, and the author views new Fed Chair Kevin Warsh, in office since May, as an incrementalist, which he considers good for investors.
- Fed sees AI boom adding to inflation headache , but others may pay for the medicine
The Reuters article reports that the AI investment boom, increasingly seen at the Federal Reserve as a driver of inflation, forces central bankers to cool the rest of the economy with higher rates, and the pain falls unevenly. Small businesses, credit-dependent households and a weak housing market may bear the brunt, while large AI firms such as Amazon, Apple and Anthropic are seen as largely immune to rate hikes. ADP chief economist Nela Richardson said the Fed's 2% inflation goal has been unmet for more than five years and that fewer routes to it remain open. Fed Chairman Kevin Warsh called AI investment a “shock” to prices and demand, with the industry expected to invest about $1 trillion next year, roughly 3% of GDP. The Fed meets October 27-28 and is expected to hold rates at 3.75%-4.00%, while officials debate the pace and extent of further hikes.
Related markets
Latest news
- Roblox Is Now Down 38% in 2026: Is RBLX Stock Dead Money or Poised for a Comeback?
Roblox stock is down 38% year to date to $50.41, with a late-September court ruling letting a Los Angeles County child exploitation lawsuit proceed and a Jefferies downgrade to Underperform adding pressure. Jefferies argued the rally after the Q2 report priced in too much bookings growth, which rose only 8% to $1.6 billion in Q2 even as daily active users grew 10% to 123 million. Safety changes, including a mandatory age check, had already led Roblox to cut its full-year revenue growth forecast to 20% to 25% earlier this year. For Q3 2026, Roblox forecasts a year-over-year bookings decline of 14% to 18%. Take-Two (down 20%) and GameStop (up 31%) year to date suggest the pressure is specific to Roblox, and the article frames the key test as whether bookings stabilize while user growth continues.
- Super Micro (SMCI) Won Over $60 Billion in Orders, Is the Discount Deserved?
A contractor linked to Super Micro Computer (SMCI) pleaded guilty earlier this month to helping ship servers with advanced Nvidia chips to China, a case prosecutors say involved billions of dollars of U.S. AI technology, though the company says it was not named as a defendant and its operations are unaffected. Sales for the fiscal year ended June reached $39.1 billion, up from $22.0 billion, with CEO Charles Liang citing more than $60 billion in new orders, several hundred added enterprise customers, and a record backlog. Management guides to $65.0 billion to $72.0 billion in fiscal 2027 sales, and sales have grown about 61.5% a year over five years. Gross margin was 10.8% for the full year but rose to 17.5% in the June quarter, with net income of $1,178 million, while the trailing 12-month operating margin was 7.09%. The article notes the stock trades at a much lower multiple of expected earnings than the sector, and that one strong quarter does not yet prove a new margin level.
- Is Nvidia Stock Really Trading for Just 8 Times 2030 Earnings?
Nvidia is the market's most valuable company, with a market cap above $5 trillion. It trades at 27 times adjusted trailing earnings, but only about 8 times analysts' estimate for fiscal 2030 earnings, a figure the author stresses is a moving target. Revenue growth accelerated from 56% in Q2 FY 2026 to 106% in Q2 FY 2027, though guidance points to a slight slowdown in the current quarter. The stock trades at 13 times next year's earnings, and the board recently authorized a record $150 billion in share repurchases. The author also acknowledges risks such as slower growth or contracting net margins.
- California billionaire tax could backfire, Stanford study says
Stanford economists Benjamin Jaros and Joshua Rauh argue in an NBER working paper that California's proposed one-time 5% tax on billionaire wealth could raise far less than projected and ultimately reduce state revenue. Seven billionaires, including Peter Thiel, Larry Page and Sergey Brin, have publicly left the state, removing about $540 billion, or 30%, of California's billionaire wealth from potential taxation. The authors estimate the measure could generate only about $30 billion, versus the $100 billion projected by proponents, while losing $1 billion to $3.5 billion a year in income tax revenue could leave the state about $39 billion worse off in present-value terms if those losses persist. The measure, Proposition 40, goes to voters next month, and a Citrin-Politico poll found 46% of likely voters in favor and 43% opposed. Supporters, including Nobel laureates Daron Acemoglu and Joseph Stiglitz, argue the tax will fund health care and that California has attracted more venture funding since the proposal was announced.
- US Orders Civilian Agencies to Rip DeepSeek Out of Government Systems
The U.S. Department of Homeland Security on Monday ordered civilian federal agencies to remove DeepSeek products and third-party services built on the model from their IT systems, and to stop buying them. The notice warns that using DeepSeek may transfer sensitive data to China and could produce intelligence on U.S. persons and agencies. The Commerce Department, the Navy, and the states of New York, Tennessee and Virginia had already restricted DeepSeek. The FCC votes on October 29 on barring Chinese labs from testing electronics for U.S. use.
- NVIDIA Stock And 2 Other Undervalued Stocks To Own
Rising interest rates have pushed down bond prices, with 10-year U.S. Treasuries recording one of their steepest multi-year declines since the 18th century. The article highlights three U.S. stocks that a Simply Wall St cash flow screen considers attractively priced relative to their future cash flow potential: NVIDIA, Wells Fargo and J.B. Hunt Transport Services. NVIDIA generated about US$275.4b from Compute & Networking and US$27.6b from Graphics, with a market cap of US$5,170.6b, and the piece notes that an open-source or cheaper alternative to its CUDA platform could weaken its moat. Wells Fargo, with a market cap of US$251.7b, grew average loans 12% and average deposits 10% year over year in 2Q26 after the removal of its asset cap, while J.B. Hunt, with a market cap of US$21.3b and US$13.3b in revenue, recorded record intermodal volume of over 578,000 loads in Q2 2026.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.