【明報專訊】THE US Federal Reserve has announced that it is set to begin reducing its balance sheet, signaling an end of a state of distortion in the capital market that has lasted for nine years. It remains to be seen whether the financial world and the global economy will experience a smooth adjustment and return to a state of normalcy without the new development causing any shock waves. Furthermore, the fact that US interest rates are set to rise and that the reduction of the Fed's balance sheet is now a foregone conclusion is likely to introduce even more uncertainty to the capital market and asset prices. Hong Kong people who are eager to buy a flat should monitor closely how the development will affect Hong Kong' s property market.