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Taiwans M2 money supply annual growth rate was 7.83% in May, compared to 6.45% in the previous month.On June 18th, Mike Shedlock, a registered investment advisor at SitkaPacific Capital Management, stated that Warsh was Trumps best choice among all his appointments. In his debut as Federal Reserve Chairman, Warsh didnt rush in with preconceived notions, but instead promised to research better data collection methods. Warsh disliked the "dot plot" guidance, but instead of immediately repealing it, he chose not to submit forecasts. Greenspan, Bernanke, Yellen, and Powell, on the other hand, were all "disasters." Bernanke was the worst, implementing massive quantitative easing, paying interest on reserves, and being a staunch advocate of forward guidance. Warsh wanted to repeal the "paying interest on reserves" policy, a legacy of Bernankes policies. This is a welcome change. Warshs slow and meticulous research-based reform approach is more likely to gain consensus quickly than forceful implementation. At least, Warsh brought about necessary changes. However, not everything is perfect. I strongly criticize Warshs proposed "cut-off mean inflation" indicator, which removes more inflation data than it retains. I also have doubts about his so-called "market-based measure of inflation".Russian President Vladimir Putins secretary, Kobyakov, said: "The energy shortage will only worsen in the coming years."Swiss National Bank President: We take the overall situation into account when we intervene. The Swiss franc has depreciated slightly since the last meeting.International Energy Agency Executive Director Fatih Birol: I hope that lasting peace can be achieved between Iran and the United States, and that the Straits can be opened.

As BoJ Udea Mentions the Appropriateness of Current Monetary Policy, EUR/JPY Exhibits a V-Shaped Movement

Daniel Rogers

Feb 24, 2023 14:30

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When Kazuo Ueda, the nominee for Governor of the Bank of Japan (BoJ), addresses the Japanese parliament, the EUR/JPY currency pair exhibits a V-shaped movement. The commentary of Haruhiko Kuroda's successor as Governor of the Bank of Japan has increased the volatility of the Japanese Yen.

 

As he describes the current monetary policy as appropriate and necessary to sustain 2% inflation, BoJ Ueda's speech appears more diplomatic. Moreover, he stated that rising import prices are the cause of Japan's rising inflation. Domestic demand is still insufficient, but the central bank is attempting to achieve pre-pandemic growth rates. The neighborhood has descended into lunacy as a result of his speech's absence of Yield conversion control (YCC) discussions.

 

Despite current discussions about the expansion of the YCC, the economic outlook for the Japanese Yen is positive, as the Bank of Japan is working to increase labor costs, which will confidently support a revival in overall demand.

 

Nordea economists continue to be optimistic about the Japanese Yen: "We remain fairly sanguine on JPY due to our expectations of a change in Bank of Japan monetary policy later this year." According to a note from Nordea, the time is ripe for a normalization of the Bank of Japan's stimulative monetary policy, "with inflation reaching its highest level in decades and a prognosis for higher wage growth."

 

Despite the easing of inflationary pressures, investors are concerned that the normalization of the Eurozone economy will take a significant amount of time. In order to maintain a ceiling on the price index, the European Central Bank (ECB) is anticipated to continue raising interest rates.


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