- by GI Magazine
- Sep 30, 2022
TOKYO, July 12 (Reuters) - Janet Yellen, U.S. Treasury Secretary met Haruhiko Kuroda, the Governor of Bank of Japan on Tuesday. The Treasury Department said both countries tackled with escalating economic challenges that was aggravated by Russia's war in Ukraine. Japan Official also claimed that Yellen shall meet with the finance minister- Shunichi Suzuki later on Tuesday to discuss on currencies and economic crisis of the country.
The discussions take place as the value of the yen against the dollar is near 24-year lows, which strains Japan's already-fragile economy by raising the price of importing fuel and basic materials. According to a senior Treasury official, Yellen will discuss the treasurer's assessment of U.S. and global economy, supply chain stability, and the fight against inflation during the meeting. In this context, the officials insisted that they would consider the divergent monetary policy trends in the United States and Japan, and their likely implications in the discussion.
The former Federal Reserve chair Janet Yellen would not speak on behalf of the Fed rather would discuss the Fed's activities to raise interest rates to fight inflation, which is currently near 40-year highs, added the official.
Last week's U.S. jobs data relieved some worries about an imminent recession and also bolstered the case for the Federal Reserve. It also aided this year’s assest prices to continue aggressively hiking rates and threatening more turbulence.
According to the sources, rate futures contracts now reflect a base-case view that the Fed's policy rate will be in the 3.5%-3.75% range by year end, higher than Fed policymakers themselves predicted three weeks ago. The Bank of Japan is expected to raise its inflation forecast but maintain ultra-low interest rates at this month's policy meeting.