By Leika Kihara TOKYO, Jan 6 (Reuters) - The Bank of Japan should set policy to anchor long-term inflation expectations around 2%, former deputy governor Masazumi Wakatabe, who is currently a member of a key government ​panel, was quoted as saying at the panel's meeting last month. At the government's top economic council meeting on ‌December 25, Wakatabe said inflation was likely to moderate as cost-push factors dissipate and help turn real wages positive in 2026, according to the minutes ‌of the meetin ...

TOKYO, Jan 5 (Reuters) - Bank of Japan Governor Kazuo Ueda said on Monday the central bank will continue ​to raise interest rates if economic and price developments move ‌in line with its forecasts. Japan's economy sustained a moderate recovery last year despite the hit ‌to corporate profits from higher U.S. tariffs, Ueda said in a speech delivered to the country's banking sector lobby. "Wages and prices are highly likely to rise together moderately," Ueda said, adding that adjusting the degree of ⁠monet ...

The dollar index (DXY00) today is up by +0.09%.  The dollar is slightly higher today on better-than-expected US economic news on home prices and the Dec MNI Chicago PMI.  Also, higher T-note yields today have strengthened the dollar's interest rate differentials.  Questions about the Fed's independence are limiting gains in the dollar after President Trump said Monday evening that he "still might" fire Fed Chair Powell.  Also, strength in the Chinese yuan is undercutting the dollar after the yuan rallied t ...

Core Insights - RH, formerly known as Restoration Hardware, has faced significant fluctuations in its business and stock performance over the years, particularly influenced by macroeconomic factors [1][2]. Company Strategy and Performance - CEO Gary Freeman initially proposed ambitious expansion plans to transform RH into a comprehensive lifestyle brand, including ventures into restaurants, hotels, and real estate developments [2]. - Despite the downturn in the housing market due to the Federal Reserve's rate hikes in 2022, RH continued to expand its core luxury homegoods business, accumulating debt in the process [3]. - The stock price peaked in August 2021 at around $700, driven by investor enthusiasm for the company's growth potential [2]. Economic Environment - A year ago, there was optimism for a recovery in the housing market as the Fed began cutting interest rates, but this was short-lived due to subsequent market reactions and tariff policies from the Trump administration that negatively impacted manufacturing operations in Southeast Asia [4].

Corporate bankruptcies are rising in 2025, nearing a 15-year high, S&P reports. This year, we've seen numerous notable bankruptcies, including Spirit Airlines and Claire's. How bad is it? We break down the trends in 3 charts. If you watch the news, you have undoubtedly seen the stories of well-known companies closing stores or raising doubts about their ability to continue operating. Earlier this month, S&P's data tracking company seemed to confirm our worst fears, reporting that 2025 bankruptcies ...

Core Viewpoint - The Bank of Japan (BOJ) should maintain a loose monetary policy and proceed very gradually with interest rate increases due to global trade uncertainties affecting the economic outlook [1][2][3]. Economic Performance - Japan's economy has outperformed expectations this year, driven by strong consumption and exports, aided by a trade deal with the U.S. that has reduced some uncertainties [1]. - The BOJ raised its key interest rate to 0.5% in January, believing the country was close to achieving a sustainable 2% inflation target [4]. Risks to Growth - There are significant downside risks to growth stemming from ongoing uncertainties regarding U.S.-China trade negotiations and potential reversals in global financial conditions [2]. - Concerns exist about whether domestic wages will continue to rise sufficiently to support consumption and maintain inflation around the BOJ's target [2]. Monetary Policy Approach - A gradual approach to monetary policy is deemed crucial given the current uncertainties, with a focus on analyzing incoming data before making further rate adjustments [3]. - The BOJ's next monetary policy meeting is scheduled for October 29-30, with additional meetings planned for December and January [4]. Inflation and Economic Conditions - BOJ Governor Kazuo Ueda has indicated a cautious stance on rate hikes, particularly in light of the economic impact of U.S. tariffs and persistent food inflation driven by a weak yen [5]. - The risks to the price outlook are considered balanced, with limited pass-through effects of the weak yen on inflation [6]. Political Landscape - Political uncertainty is contributing to the fragile economic environment, highlighted by the recent challenges faced by ruling party leader Sanae Takaichi in her bid to become Japan's first female prime minister [6].

Group 1 - Takaichi is set to become Japan's first female prime minister, advocating for expansionist economic policies and likely leading to a pause in interest rate hikes by the central bank [1][2] - The government under Takaichi will prioritize reflating demand and the broader economy, viewing recent price rises as a result of higher raw-material costs [3][4] - Analysts suggest that Takaichi's leadership may lead the Bank of Japan to adopt a more cautious approach to interest rate hikes, potentially delaying any increases until early next year [5][6] Group 2 - Prior to Takaichi's victory, markets anticipated a greater than 60% chance of a rate hike this month, influenced by sustained inflation above target levels and a split in the Bank of Japan's board [7]

Core Insights - U.S. Treasury Secretary Scott Bessent is actively searching for a new Federal Reserve chairman and has had a productive discussion with former Fed official James Bullard [1][2] - Bullard, who previously served as president of the Federal Reserve Bank of St. Louis, expressed his interest in the chair position and emphasized the importance of maintaining the dollar's reserve currency status, controlling inflation, and preserving the Fed's independence [2] - Bessent indicated that if inflation is perceived as a problem, the administration would support interest rate hikes from the Fed, and he anticipates a decrease in inflation in the near future [3] Group 1 - Bessent had a two-hour session with Bullard, highlighting Bullard's expertise in monetary policy and his deep understanding of the Federal Reserve [1] - Bullard's priorities for the Fed chair position include defending the dollar's reserve status and ensuring low and stable inflation [2] - The administration is benefiting from revenue generated by new tariffs, with Bessent noting that many exporters are absorbing these tariffs [3]

Inflation in Tokyo sharply eased led by government utility subsidies, while still staying well above the Bank of Japan’s target, keeping it on a path toward further interest rate hikes https://t.co/AC0aTWbLzz ...

Economic Activity - Brazil's economic activity experienced a decline for the second consecutive month in June [1] - The decline is attributed to the central bank's aggressive interest rate hikes taking effect [1]