There are growing signs that inflation is retreating while the labor market remains healthy. Absent another shock, the Federal Reserve is likely to ease up on its rate increases as these dynamics take hold. Even a pause in rate hikes would most likely guide the economy toward a mild downturn rather ... READ MORE >
Bank of Japan
Japan intervenes in the currency market
With the yen in freefall, Japan on Thursday took the unusual step of intervening in currency markets to prop up the yen's value. For the first time in 24 years, the government began selling dollars to buy yen. The move came soon after the Bank of Japan held its policy rate at sub-zero levels, bucking ... READ MORE >
Are we entering an era of central bank intervention in currency markets?
Over the past week, the Bank of Japan has conducted what Is known as a rate check, or a formal inquiry into the buying or selling price of the Japanese yen. This rate check has been done in preparation for a possible intervention into foreign exchange markets to prop up the declining ... READ MORE >