How should Japanese and American financial authorities confront politics?!

7/31Ueda Bank of Japan(hereinafter, BoJ)The Governor, with no improvement in the previous meeting or in the economic fundamentals, suddenly made a decision to hike rates. On the same day, Fed Chair PowellFRBstated at a press conference that9signaled a possible rate cut in September, and unlike the previous9September cut, which was deemed to be neutral for the U.S. presidential election in November, showed a different stance. This article explains how political pressure influenced the judgments of U.S. and Japanese monetary authorities and assesses the future USD/JPY outlook.