Warsh: “A great deal of interest in South Korea’s economy” ... calls Bank of Korea governor “capable and a good friend”

[Financial News] Kevin Warsh, chair of the U.S. Federal Reserve (Fed), described South Korea as a supplier to high-tech industries and expressed great interest in the country on the 28th (local time).
After the Federal Open Market Committee (FOMC) meeting that day, Warsh answered a question from a South Korean reporter at a press conference in Washington, D.C., about the impact of the Fed’s balance-sheet reduction on overseas foreign-exchange markets, including those in South Korea and Japan, which hold U.S. Treasury securities.
“I would say that I probably pay more attention to the South Korean economy than you think,” he said, “because a substantial part of the inputs for the new technological boom comes from South Korea, Japan and Singapore.”
“So I am particularly interested in what is happening in the South Korean economy,” he added, “because the state of the South Korean economy tells us what is on the planes and ships coming this way.”
He was explaining that he closely monitors economic trends in South Korea and other countries at the forefront of supply chains for key raw materials and components that support advanced technologies such as artificial intelligence (AI) and semiconductors.
Warsh also mentioned his 20-year relationship with Bank of Korea Governor Hyun Song Shin.
He called Governor Shin “a very capable person and a good friend” and recounted how they had debated during the global financial crisis the use of central banks’ balance sheets.
Regarding the balance sheet, he said recommendations would be delivered to the FOMC around the first quarter of next year, adding, “The task force’s proposals and recommendations will be made after thorough consideration.”

[email protected] Lee Seok-woo, international affairs correspondent Reporter