FOMC decided on a 0.25% rate cut, and the USD/JPY temporarily fell to around 145.48 yen.

【9/17Market Overview

In Tokyo time, as expectations of a US rate cut rise,146.28the yen weakens through146.21to 146.21. Afterward, toward the base price, strong domestic demand for dollars is observed,146.61and the yen rebounds to146.61. In European time, the USD/JPY rises amid adjustments ahead of theFOMCmeeting,146.68to the yen.Time,isFOMCto cut the policy rate as expected by0.25%point. In the statement, it said, “Job growth has slowed, unemployment has risen modestly, but remains low,” and that the committee is watching the risks to the two sides of its mandate, with downside risks to employment having increased.9/16When Governor Milan voted against, it became clear that a 0.50%cut was advocated. At the same time, in the FOMC members’ dot plot released, the median rate at the end of 2025 was lowered to3.625%, indicating rate cuts in the remainingmeetings of the year.

After the policy rate announcement, the USD/JPY briefly fell to145.48yen, but after the selling subsided, the 10-year US yield rose and the dollar strengthened toyen.

Additionally, PowellFRBchair said in a post-FOMC press conference that “most of the slowdown in employment reflects a shrinking labor force,” “risk balance has shifted, and downside risks to employment have risen,” and that, “today’s decision is a risk-management rate cut,” and that “a 0.50% cut at this meeting was not broadly supported.” Some market participants read Powell’s remarks as indicating caution regarding future rate cuts.

【9/18Market View