Finance minister Choi Sang-mok has warned of a possible increase in volatility in the local financial and foreign exchange markets after the latest interest rate cut by the U.S. Federal Reserve.

The minister issued the warning Thursday during a meeting of the country’s top financial and economic policymakers, including Bank of Korea(BOK) Gov. Rhee Chang-yong. 

The meeting came after the U.S. Federal Reserve cut its key interest rate by a quarter of a percentage point and signaled two additional cuts next year, down from the four it had forecast earlier. 

Choi said the nation can expect to see increased volatility in the short term amid the significant weakening of major global currencies against the U.S. dollar, calling for a calm response from market participants.  

The minister also cautioned against excessive movement in one direction in the market, saying the government and the BOK will take swift, bold action if market volatility becomes excessive.