Rate cut, rate hike, or hold—what will the decision be?
Hot days have been continuing.
At the same time, earthquakes are frequent, and this hot weather makes me hope that a big earthquake won’t occur, this is Kotsume-kko, hello.
We must stay prepared at all times.
Now, regarding the Middle East situation, the developments have been so volatile that I kept from blogging Σ(゜Д゜；≡；゜д゜)
Today is news about rate cuts, etc.
(Quoted from Yahoo News ↓)
【Shinto Joint】On the 1st, Federal Reserve Chair Jerome Powell showed a stance not to yield to political pressure from President Trump to cut rates further. He emphasized, “I am focused on my job of price stability and maximum employment.” He explained that the decision to cut rates will be data-dependent, and left room for a decision at the monetary policy meeting to be held at the end of this month.
At an ECB forum held in Sintra, Portugal, Powell had previously shown a cautious stance toward further rate cuts and had faced criticism from President Trump who seeks rate cuts to stimulate the economy.
Furthermore, in other news (TV Asahi News Bureau) ↓
Powell indicated that without the Trump administration’s tariff policies, he would have already cut rates.
(omission)
President Trump has sent him a handwritten letter saying “too late,” increasing pressure on the Fed to cut rates.
...that is the story.
Also, what about Japan’s interest-rate policy? (Quoted from Bloomberg ↓)
(Bloomberg): Bank of Japan Governor Haruhiko Kuroda stated on the 1st that he would look at additional data for the next policy decision, suggesting he is not rushing to raise rates.
Governor Kuroda spoke at the ECB annual forum held in Sintra, Portugal, saying, “More information is needed to judge policy.” He noted that the BOJ is watching the trend of core inflation, the impact of U.S. tariffs, and the outlook for food inflation that is expected to ease in the future.
(omission)
So far, Kuroda has indicated that a gradual pace of rate hikes would be appropriate. He cites that the core inflation growth, supported by a wage-price virtuous cycle, still remains below the BOJ’s target.
...that is the story.
It seems Governor Kuroda was also in a discussion with some humor, but is cautious about rate hikes.
Trump’s tariff negotiations with Japan are also a concern (-ω-;) hmm
https://www.gogojungle.co.jp/tools/indicators/48521
https://www.gogojungle.co.jp/tools/indicators/55316?via=users
