Tag - federal-reserve

 
 

FEDERAL RESERVE

The likelihood of interest-rate hikes from the Bank of Japan and further cuts from the Federal Reserve will drive the yen's recovery to as far as ¥130 against the dollar, according to some strategists.
BUSINESS / Markets
Nov 18, 2024
Yen bulls lie in wait for U.S.-Japan yield gap to shrink next year
The likelihood of Bank of Japan interest-rate hikes and further Federal Reserve cuts will drive the yen's recovery, some say.
U.S. Federal Reserve Chair Jerome Powell speaks during a news conference following a two-day meeting on interest rate policy in Washington on Thursday.
BUSINESS / Economy
Nov 8, 2024
Powell signals readiness to defy Trump in defense of Fed
Federal Reserve Chair Jerome Powell insisted the incoming president doesn’t have the power to fire him or other senior Fed leaders.
During the Bank of Japan's September policy board meeting, some members pointed out that the central bank needs to more carefully communicate with the public to prevent a divergence between its views and those of investors.
BUSINESS / Economy
Nov 6, 2024
Bank of Japan board member moots Fed-style dot-plot projections
The dot plots show short-term rate projections of U.S. Federal Reserve officials.
Traders borrow in currencies where rates are low and put that money to work in economies where rates are high, pocketing the difference.
BUSINESS / Markets / FOCUS
Oct 2, 2024
Massive carry trade still lurks in the shadows and looms over markets
Trillions might remain, slightly different, less obvious and all but forgotten by a market eager to move on.
The Federal Reserve building in Washington. Federal Reserve Chair Jerome Powell said last week he felt that the pre-pandemic years during which the Fed's rate hovered near zero for years and Europe delved into the exotic world of negative rates are gone for good.
BUSINESS / Economy
Sep 27, 2024
A global hunt for neutral rates to shape world finance costs
Policymakers are exploring whether the rates required to keep inflation in check and economies growing are higher now than the ultra-low ones before the pandemic.
Fed Chair Jerome Powell injected uncertainty as to where future rates will ultimately land during his news conference following the Federal Open Market Committee meeting in Washington on Wednesday.
COMMENTARY / World
Sep 19, 2024
The Fed’s uncertain destination troubles the bond market
The upshot is that longer-term bond yields don’t have much room to fall in the near-term unless the economy weakens materially.
Federal Reserve Chair Jerome Powell holds a news conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington on Wednesday.
BUSINESS / Economy
Sep 19, 2024
Fed cuts rates by half-point in decisive bid to defend economy
It is the Fed’s first rate cut in more than four years.
Workers take a midday rest at Sudirman Central Business District in Jakarta on Feb. 15. For the past two months, fund managers have boosted positions in sovereign bonds in Indonesia, as well as Thailand and Malaysia.
BUSINESS / Economy
Sep 18, 2024
How Asia is bracing for Fed’s imminent shift to rate cuts
The widely anticipated pivot is likely to bolster emerging market assets in Asia and extend their lead over global favorites such as Japan and chip stocks.
The yen has gained more than 4% this month versus the dollar amid expectations the U.S. Federal Reserve will start cutting interest rates this week.
BUSINESS / Markets
Sep 17, 2024
Hedge funds start to split on long-yen trades before Fed and BOJ meets
Some short-term funds locked in profits ahead of the monetary policy decisions this week, while others are looking to increase their long-yen positions.
Hong Kong’s property tycoons are eagerly awaiting interest rate cuts by the Federal Reserve due to their struggles with slow home sales, vacant office buildings and tenants pushing for lease renegotiations.
COMMENTARY / World
Sep 12, 2024
The Fed is making Hong Kong's billionaire landlords anxious
Many Hong Kong property companies have significant amounts of debt at floating interest rates tied to Hibor, which tracks the Fed's rate changes.
The U.S. dollar has fallen 5% from its 2024 highs, close to its lowest level in about a year against a basket of peers following a sharp drop last month.
BUSINESS / Markets
Sep 6, 2024
Market sentiment mixed on pace of dollar's weakening ahead of Fed rate cuts
The currency has declined rapidly against peers as anticipated interest rate cuts threaten to end the greenback's yearslong period of strength.
Bank of Japan Gov. Kazuo Ueda "predictably unpredictable" actions and policy shifts highlight the need for improved communication, reflecting modern central banking practices.
COMMENTARY / Japan
Aug 28, 2024
How long can the BOJ get away with rate shocks?
The BOJ’s shifting policies and Kazuo Ueda’s unpredictable approach reflect the need for better alignment with modern central banking practices.
The yen traded in the 143 range against the dollar on Monday, a three-week high.
BUSINESS / Markets
Aug 26, 2024
Dollar sinks against the yen, hovers near 2½-year low to sterling
The U.S. dollar also hovered near its lowest in 13 months against the euro.
U.S. Federal Reserve chairman Jerome Powell
BUSINESS / Economy
Aug 26, 2024
Powell’s pivot leaves traders debating size and path of rate cuts
Bond traders are now focusing in on bets over the size of the first U.S. interest rate reduction and the future path of easing.
Bank of Japan Gov. Kazuo Ueda speaks during a Lower House financial affairs committee meeting in Tokyo on Friday.
BUSINESS / Economy / ANALYSIS
Aug 24, 2024
Fed's dovish shift a mixed blessing for BOJ rate hike plan
The BOJ's efforts to raise interest rates could be complicated if the two central banks' diverging policy paths keep markets jittery.
A television station broadcasts U.S. Federal Reserve Chair Chair Jerome Powell speaking in Jackson Hole, Wyoming, on the floor of the New York Stock Exchange in New York on Friday.
BUSINESS / Economy / ANALYSIS
Aug 24, 2024
Powell's Fed not shy about election-year cuts and ready to defend job market
The Fed chief sent a strong signal that the central bank will start cutting interest rates in mid-September, roughly seven weeks before the Nov. 5 election.
Investors are grappling with the possibility that the Federal Reserve may need to loosen its tight grip on the economy much faster than anticipated to avoid a recession.
BUSINESS / ANALYSIS
Aug 3, 2024
U.S. recession scare fuels searing rally in bonds and puts yield curve flip in view
Investors are grappling with the possibility the Federal Reserve may need to loosen its grip on the economy faster than anticipated to avoid a recession.
Japanese stocks are down 10% from their July peak as the yen strengthens.
BUSINESS / Markets
Jul 26, 2024
Yen melt-up nudges Japanese stocks into correction territory
Japan’s benchmark index is now down 10% from its July peak, meeting the textbook definition of a market correction.
How policymakers have responded to past economic crises, such as the 2008-09 financial crisis and the COVID-19 pandemic, will shape their preparedness in dealing with future recessions. 
COMMENTARY / World
Jul 8, 2024
Policy lessons from recent economic crises
Eventually, the world will face another recession. How will policymakers use the lessons learned from the 2008-09 financial crisis and COVID-19 pandemic to respond?
The weakness of the yen is posing a big problem for small and midsize businesses. As for desired exchange rates, 69.5% said they want the yen trading between ¥110 and ¥135 to the dollar.
BUSINESS / Companies
Jul 4, 2024
Weak yen inflicts major damage to small and midsize businesses, survey says
While some larger, export driven companies have benefited from the weak currency, smaller firms are struggling to adjust.

Longform

Construction takes place on the Takanawa Gateway Convention Center in Tokyo, slated to open in 2025.
A boom for business tourism in Japan?