Fed Chair Powell confirms cuts are coming…eventually
In the latest Federal Open Market Committee (FOMC) meeting led by Fed Chair Powell, a key message emerged: the Fed’s next monetary policy move is likely to be a rate cut. However, this decision hinges on inflation rates aligning with the Federal Reserve’s target of 2%, making it difficult to time the first rate cut. Predictions from CME futures traders peg November to be the likely target date of the first cut.
USD/JPY plummeted 300 pips from likely Bank of Japan buyback
Shortly after the Fed meeting, USD/JPY experienced a sharp decline, dropping over 300 pips within an hour. This jarring movement is strongly attributed to the Bank of Japan (BoJ) actively stepping in to buy back yen, a move aimed at stabilizing the currency amidst volatility. This marks an implied second intervention by the BoJ in the week following the USD/JPY reaching an all-time high above 160.00 on Sunday night. Analysts monitoring the Bank of Japan’s financial accounts confirm outflows that corroborates both instances.
