FOMC, policy rate kept unchanged. Powell, Chair of the Federal Reserve, denies rate cut.

【5/1Market Overview

In Tokyo time, USD/JPY is range-bound around the upper 157s yen.157yen level,157.98yen high was touched in European session,FOMC ahead, after which157yen range held in the upper 157s.NYtime,4monthADPUS payrolls exceeded expectations, but the reaction was limited.4month USISM Manufacturing Index・3monthJOLTS (Job Openings and Labor Turnover Survey) came in below expectations, sending USD/JPY down to157.39yen.

FOMCas expected by the marketFF target range for the federal funds rate–5.255.50% holds steady. The statement says, “inflation has not yet progressed toward the 2% target in recent months,” hinting that the timing of cuts may be delayed. Also,QT (balance sheet reduction) pace will be slowed from6months.

PowellThe FedChair, at a press conference, said “inflation remains too high,” and that it will take longer than expected to gain conviction for a cut, and he ruled out the possibility that the next action will be a rate cut. US10year bond yieldsdeclined, bringing USD/JPY down to157.00yen. After 5o’clock, intermittent USD/JPY selling and yen buying flows were observed, increasing expectations of government and BOJ intervention to buy yen, and USD/JPY briefly fell to152.99yen.