Japan Still Sees Modest Economic Recovery but Warns It Now Needs to Watch Future US Policy amid Headwinds of Inflation, Middle East Tensions, Weak Yen
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy’s “modest recovery” is set to continue thanks to wage hikes amid widespread labor shortages, but urged a close watch on the future U.S. government policy as well as lingering high costs for necessities, geopolitical risks and the weak yen. In its […]
Fed Officials Keep Speaking Cautiously About Cutting Interest Rates Further
– Cook: More Rate Cuts ‘Likely’ but Size, Timing to Depend on Data – Schmid: “It Remains to Be Seen’ How Much Lower Rates Should Go By Steven K. Beckner (MaceNews) – Federal Reserve policymakers have continued this week to signal caution on further interest rate reductions. When the Fed’s policymaking Federal Open Market Committee […]
Fed Officials Agree It’s Time to Start Lowering Federal Funds Rate
– But Williams, Waller Won’t Say Size or Pace of Rate Cuts By Steven K. Beckner (MaceNews) – Two top Federal Reserve policy-makers strongly signaled Friday that the Fed will be cutting short-term interest rates for the first time since March 2020 when its rate-setting Federal Open Market Committee meets in mid-September. However, neither New […]
Japan Government Slightly Upgrades Its View on Economic Recovery after BOJ Conducts 2nd Rate Hike in July
By Max Sato (MaceNews) – Japan’s government upgraded its overall economic assessment for the first time in six months, noting consumer spending is supported by wage hikes and temporary income tax credits, but the change in wording is subtle and it continues to say the economy is recovering “moderately.” In its monthly report for August […]
Preview: Japan Q2 GDP to Post Modest Rebound After Slumping in Q1 but Consumption Remains Sluggish amid High Costs
By Max Sato (MaceNews) – Japan’s gross domestic product for the April-June quarter is forecast to post a modest rebound after suffering its first contraction in two quarters in January-March, up 0.6% on quarter, or an annualized 2.3%, as consumption and business investment picked up from the drag of suspended output at Toyota group factories […]
Japan PM Kishida Says He Will Not Seek Re-Election at LDP Leadership Convention Next Month, Hoping to Calm Voter Rage Over Political Funding Scandal
By Max Sato (MaceNews) – Japanese Prime Minister Fumio Kishida on Wednesday announced that he will not seek re-election at the Liberal Democratic Party leadership convention in late September, taking the blame for widespread political funding scandals at the ruling party, a key factor behind sluggish voter support for the administration. Kishida, 67, will step […]
BofA Global Research Fund Manager Survey: Global Investors Buy Bonds on Declining Global Growth Expectations
–US Recession Concern Top Tail Risk –Sixty percent of Managers Expect Four Or More Fed Cuts in Next 12 Months By Vicki Schmelzer NEW YORK (MaceNews) – Global investors made a beeline into bonds in July, driven by declining world growth expectations, according to BofA Global Research’s monthly fund manager survey, released Wednesday. Jitters about […]
Fed Officials Remain Hesitant To Back Aggressive Rate Cuts Despite Weaker Job Data
– Consensus for 25 bp Cut in September Seemingly Intact, But Early or Larger Cut Doubtful By Steven K. Beckner (MaceNews) – When a disappointing July employment report and other worrisome economic indicators triggered a Wall Street sell-off, speculation mounted that the Federal Reserve would have to play catch-up and ease monetary policy more aggressively […]
Bank of Japan Hikes Overnight Rate Target to 0.25% from Range of 0% to 0.1% in 7 to 2 Vote
–BOJ Releases Specific Plans to Trim its Monthly JGB Purchases to Y3 Trillion from Y6 Trillion by end of Q1 2026–BOJ Governor Ueda: Raised Rates Because Economy, Prices Have Been on Track–Ueda: Weak Yen Impact on Prices ‘Not Necessarily Biggest Reason’ for Rate Hike By Max Sato (MaceNews) – The Bank of Japan said Wednesday […]
Preview: Bank of Japan Expected to Keep Rate Target This Week, Seek Rate Hike in September if Data Shows Wage Hikes Spreading to Smaller Firms, Pushing Up Weak Services Costs
By Max Sato (MaceNews) – The Bank of Japan board is widely expected to maintain its policy stance at its two-day meeting this week and wait until its next meeting on Sept. 20-21 to follow up on its first rate hike in 17 years in March by raising the overnight interest rate target to 0.25% […]