Key remarks by officials on the 27th (Japan time) (Traders Web)

Since the 5:10 a.m. release, Bank of Japan Deputy Governor Himino said that monetary policy does not directly target exchange rates, while pointing out that exchange-rate movements are an important factor affecting the economy and prices. He said higher crude oil prices would weigh on the economy, but that the impact of developments in the Middle East would be relatively limited and the domestic economy would continue to grow moderately, and emphasized the stance of adjusting the degree of monetary easing. Year-on-year inflation is expected to exceed 2% in the second half of the fiscal year, and he indicated that monetary easing would be adjusted in line with economic and price conditions. He said the timing and pace of those adjustments would be considered in light of developments in the Middle East, AI demand and exchange-rate fluctuations.

At 2:35 p.m., he indicated that the views set out in the Outlook Report would serve as the criteria for decisions. He said it would not be appropriate to state in advance what action would be taken at a specific meeting, and indicated that the matter would be discussed at each policy meeting.

In remarks at 9:30 p.m., Chicago Fed President Goolsbee said his biggest short-term concern was that inflation was not under control and expressed the view that the current labor market was abnormal. He reiterated his view that a 3% interest rate and 2% inflation should be an accommodative target. He also said that inflation over the past 3 months had not worsened, and expressed the view that political interference with central banks would cause inflation.

At 2:38 a.m. on the 28th, U.S. President Trump described Canada as a difficult trading partner and, regarding Iran, said that it was "in big trouble." He also said that several million barrels of oil pass through the Strait of Hormuz every day.