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Glonghui, June 18th｜Bridgewater Associates founder Ray Dalio: We believe we are currently at a critical juncture. We are entering an especially dangerous period, which is expected to last from the 2026 midterm elections through the 2028 presidential election. The monetary situation is becoming increasingly severe. The US government is currently spending $7 trillion, while revenue is only about $5 trillion, resulting in a 40% overspend. Although the government has a large amount of debt to finance, market demand for this debt is declining. This decline in demand is due both to standard supply and demand factors and to debt holders' concerns over potential sanctions.

According to Yonhap News Agency: South Korea will implement zero tariffs on liquefied natural gas and liquefied petroleum gas to address inflation.

The Federal Reserve, under the leadership of its new Chair Walsh, adopted a hawkish stance at its first policy meeting, pushing up US Treasury yields and putting overall pressure on Asian currencies. The yen/dollar exchange rate fell below the key resistance level of 160, with strategists noting that intervention risks are increasing—interventions in recent years have repeatedly occurred near this level.The surge in the US dollar reflects Walsh’s more hawkish position and the expectation among nine voting members for at least one rate hike before the end of the year. At the same time, the Reserve Bank of Australia adopted a wait-and-see approach at its rate decision this week, shifting the short-term trajectory of the AUD/USD while making it more difficult for Asian central banks to cut rates without triggering further currency depreciation.Market analysts point out that by keeping the door open for further rate hikes and raising inflation expectations, the Federal Reserve has disrupted short-term forecasts. It is expected that negative sentiment in the US stock market will put pressure on Asian markets, especially high-valuation tech stocks and AI infrastructure stocks that are highly sensitive to hyperscale data center spending.