South Korea’s economic and financial authorities said the Federal Reserve’s 0.25 percentage point rate increase should have limited spillover effects because markets had largely anticipated the decision and conditions remain broadly stable. The Fed lifted its benchmark range to 3.75%-4.00%, its first increase in three years and two months, while signaling a higher 4.1% median year-end rate projection and the possibility of another hike. Officials led by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol will nevertheless watch the wider interest-rate gap, the won-dollar exchange rate, Treasury yields, oil prices, global capital flows and policy decisions from the BOJ and BOE. They also pledged immediate market-stabilization measures if excessive herding develops in government bonds, continued support for vulnerable borrowers, and coordinated monitoring of liquidity and asset markets. The National Assembly’s Strategy and Finance Committee separately adopted the confirmation hearing report for Lee Hyung-il, nominee for Deputy Prime Minister and Minister of Economy and Finance.