The US Federal Reserve Board and the Bank of Japan both decided to raise interest rates by 0.25%. The view has been reported that, while the US is maintaining a sense of unity, Japan changed its policy against a backdrop of market pressure.
The US Federal Reserve Board raised its policy rate by 0.25% on the 16th local time, while the Bank of Japan raised its short-term interest rate by 0.25% on the 18th. Although both central banks decided to raise rates, their circumstances and market sentiment are said to be markedly different.
Chair Warsh’s press conference lacked the cordial atmosphere seen during his predecessor’s tenure, and differing views spread over the relationship between the central bank and the market. The article focuses on how Chair Warsh will build his relationship with markets.
As for the market reaction, it has been pointed out that the views of reporters and traders shifted from initial support to opposition and confusion. These developments suggest both a view that the mutual probing between central banks and investors should be brought to an end and questions about the relationship between current market pressure and the central bank.
The article contrasts the rate hikes by the US and Japan and the reactions of markets and other parties involved, portraying the US as prioritizing cooperation between the central bank and markets, while Japan is considering how to manage policy against a backdrop of pressure.