By Leika Kihara WASHINGTON (Reuters) -The Bank of Japan must keep monetary policy loose and move very gradually in raising interest rates as global trade uncertainty clouds the economic outlook, a senior International Monetary Fund official said on Wednesday. Japan's economy has performed better than expected so far this year on robust consumption and exports, with Tokyo's trade deal with Washington easing some uncertainty, said Nada Choueiri, deputy director of the IMF's Asia and Pacific Department. Bu ...

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]

Market Trend Analysis - The previous market peak was influenced by interest rate increases and the collapse of FTX/CeFi/Luna [1] - The industry anticipates interest rate cuts, ongoing Digital Asset Technologies (DATs)/Exchange Traded Funds (ETFs), and institutional investment [1] - The market top may be further away than anticipated [1]