# Fed’s unwinding decision unlikely to have immediate impact on Korea’s interest rate: finance ministry - 매일경제 영문뉴스 펄스(Pulse)

> South Korea's finance ministry said the Fed's plan to begin shrinking its $4.5 trillion balance sheet in October would not immediately lift domestic rates. The Fed's initial reduction of $10 billion per month was in line with market expectations. The ministry expected the rate effect to be gradual.

- Date: 2017-09-21 · published 2017-09-21T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/69206-fed-s-unwinding-decision-unlikely-to-have-immediate-impact-on-korea-s-interest
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

Fed balance-sheet normalization that is already priced in has limited direct effect on feed commodity prices. It may matter over time through the dollar and interest-rate channel.

## Sources

- pulse.mk.co.kr: https://pulse.mk.co.kr/news/english/7985124

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.