Fed chair, Treasury deputy secretary attend in rare joint appearance
Meeting focuses on strengthening policy mix between fiscal and monetary authorities
Countries seek framework for rapid joint response to external financial shocks
South Korea and the United States held their first-ever "2+2" meeting between fiscal and monetary authorities, bringing together top economic officials from both countries to discuss economic and financial cooperation. The two countries aim to build a framework that strengthens coordination between fiscal and monetary policy to enable swift and effective responses to external financial shocks.
Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il met Friday with Bank of Korea Governor Shin Hyun-song, Federal Reserve Chair Kevin Warsh and US Treasury Deputy Secretary Francis Brook on the sidelines of the IMF-World Bank Annual Meetings in Thailand, the Ministry of Economy and Finance said. The gathering marked the first "2+2" meeting between the fiscal and monetary authorities of South Korea and the United States.
Treasury Deputy Secretary Brook attended in place of Secretary Scott Bessent and was joined by Erin Brown, the Treasury's undersecretary for international affairs, among others.
Participants shared assessments of recent economic conditions and discussed avenues for bilateral economic and financial cooperation. Observers noted that the Fed and the Treasury joining the same meeting was unusual given the Fed's institutional independence.
"This 2+2 meeting is particularly meaningful in that it is the first time the finance ministries and central banks of both countries have come together in this format," Lee said.
A ministry official said the meeting was intended to strengthen the policy mix between the two countries' fiscal and monetary policies. "It is significant in that it lays the groundwork for a cooperative framework that allows fiscal and monetary authorities to respond more swiftly and effectively through close coordination when an external financial shock occurs," the official said.
Before departing for Thailand, Lee held his first meeting with US Treasury Secretary Scott Bessent via video call Tuesday at Government Complex Seoul. The two sides reaffirmed the importance of South Korea-US economic and financial cooperation and discussed shared policy priorities and ways to deepen collaboration. Bessent congratulated Lee on his appointment, and Lee expressed his hope for close communication and cooperation going forward.
y2k@heraldcorp.com
