The BSP takes into account what the Fed could do but doesn't try to move in lockstep with the Fed, and considers it just a data point. said Gov. Eli Remolona. ...

Group 1 - The Bank of Japan (BOJ) is expected to raise its key interest rate by at least 25 basis points in the October-December quarter, according to a majority of economists in a Reuters poll [1] - A significant portion of economists, 55% of those surveyed, anticipate the central bank will increase borrowing costs to at least 0.75% from 0.50% next quarter, although this is a decrease from 63% in the previous month [2] - The BOJ's potential rate hike is influenced by risks such as yen depreciation and asset bubbles, with some economists suggesting that clarity on U.S. tariffs could make an October rate hike feasible [3] Group 2 - The median prediction for the year-end interest rate remains at 0.75%, with financial markets pricing in over a 50% chance of a rate hike by year-end [4] - The likelihood of further rate hikes may decrease depending on the outcome of the prime ministerial succession, particularly if a fiscal dove like Sanae Takaichi is elected [5] - Over three-quarters of economists do not expect wage increases in next year's labor negotiations to exceed this year's 5.25%, indicating potential pressure on corporate profits and economic outlook due to global economic uncertainties [6]

By Kiyoshi Takenaka TOKYO (Reuters) -Almost half of Japanese companies regard Bank of Japan (BOJ) Governor Kazuo Ueda's performance positively, outpacing the 30% with negative views of his handling of monetary policy, a Reuters survey showed on Thursday. Under Ueda, the BOJ last year exited a decade-long, massive stimulus programme by ending a negative rate policy, risky asset purchases and yield curve control (YCC), which caps the benchmark 10-year yield around 0%. About 47% of respondents hold a posit ...

Core Points - The Senate committee approved the nomination of Stephen Miran to the Federal Reserve's board of governors, which is expected to be confirmed by the full Senate [2][4] - Miran's nomination raises concerns about the Fed's independence, as he intends to retain his position as head of the White House's Council of Economic Advisers while serving on the Fed [5][11] - The Fed is anticipated to reduce its key short-term interest rate in its upcoming meeting, amidst rising inflation and a recent increase in the unemployment rate [12][13][14] Group 1: Nomination and Approval Process - Stephen Miran was nominated by President Trump to replace former Fed governor Adriana Kugler, who resigned on August 1 [3] - The committee voted along partisan lines, with a 13-11 vote, all Democrats opposing the confirmation [4][10] - Miran's confirmation could occur before the Fed's meeting next week, where interest rate decisions will be made [8] Group 2: Concerns Over Independence - Miran's plan to keep his White House role while serving on the Fed is historically unusual and has drawn criticism from Democrats [5][11] - Concerns have been raised regarding the potential erosion of the Fed's independence from political influence, particularly in light of Trump's previous actions [11] Group 3: Economic Context - The economy is facing challenges, with inflation remaining above the Fed's 2% target and a recent rise in the unemployment rate to 4.3% [12][13] - The Fed is expected to consider risks to the job market, which may lead to rate cuts, with Wall Street anticipating three quarter-point reductions this year [14]

President Donald Trump on Wednesday appealed a federal judge’s order blocking him from firing Federal Reserve Governor Lisa Cook, the latest twist in a high-stakes lawsuit that could be headed to the Supreme Court. The notice of the appeal to the U.S. Court of Appeals for the D.C. Circuit was brief. The administration's next steps could include seeking an emergency pause to Cobb's order while the lawsuit proceeds.In a statement to Fox News Digital, White House spokesperson Kush Desai defended Trump’s decisi ...

Core Points - A federal court has ruled that Federal Reserve Governor Lisa Cook can remain in her position while contesting President Donald Trump's attempt to fire her, marking a significant legal challenge to the Trump administration's influence over the Federal Reserve [2][4] - The ruling indicates that the allegations against Cook, related to mortgage fraud, are likely insufficient to justify her removal under the law governing the Federal Reserve, which requires "for cause" removals based on actions taken during a governor's time in office [2][4] - The decision allows Cook to participate in the upcoming Federal Reserve meeting, where a reduction in the key short-term interest rate is anticipated [2][4] Summary by Sections Legal Context - U.S. District Judge Jia Cobb granted Cook a preliminary injunction, suggesting she is likely to prevail in her lawsuit against her firing [2] - The court emphasized that the law limits the removal of Federal Reserve governors to concerns about their ability to perform their duties while in office [2][4] Political Implications - The ruling is seen as a blow to the Trump administration's efforts to exert control over the Federal Reserve, which is designed to operate independently from political pressures [2][4] - If Trump successfully replaces Cook, he could gain a 4-3 majority on the Federal Reserve Board, potentially influencing monetary policy decisions [4] Economic Considerations - Economists express concern that increased political control over the Federal Reserve could lead to lower interest rates than warranted by economic conditions, risking inflation and higher long-term borrowing costs [4] - The current short-term interest rate stands at 4.3%, with expectations of a reduction to between 4% and 4.25% in the upcoming meeting [2][4]

And we are back on the halftime report. Let's get to our Megan Cassella in Washington with breaking news. Megan Frank, breaking news out of the White House here that President Trump now says he is appealing the judge's recent decision to allow Lisa Cook to return to work while her case plays out.He's appealing that order that blocked him from firing Federal Reserve Governor Lisa Cook. It's a very short appeal. All we know is that the president's legal team has now fired it with the US District Court for the ...

Core Viewpoint - A federal judge has temporarily halted President Trump's attempt to remove Federal Reserve governor Lisa Cook, allowing her to remain in her position while her legal challenge progresses [1][2]. Group 1: Legal Ruling - Judge Jia Cobb ruled that Cook's removal was likely in violation of the Federal Reserve Act's "for cause" provision, which is limited to a governor's behavior in office [2]. - The ruling also highlighted that Cook's procedural rights under the Fifth Amendment's Due Process Clause were violated, and she could face irreparable harm from her removal [2]. Group 2: Implications for Federal Reserve - The preliminary injunction allows Cook to attend an important Federal Reserve policy meeting scheduled for September 16 and 17, where a vote on lowering interest rates is expected [3]. - The Federal Reserve has acknowledged Cook's intention to challenge her removal and stated that it will abide by any court decision [3]. Group 3: Statements from Legal Representatives - Cook's lawyer emphasized that the ruling protects the independence of the Federal Reserve from illegal political interference, asserting that unsubstantiated allegations against Cook could jeopardize financial stability and the rule of law [4].

Global Economy & Policy Insight Weekly 3 September 2025 Takahide Kiuchi is executive economist at Nomura Research Institute. This is his personal view. Takahide Kiuchi t-kiuchi@nri.co.jp To receive this publication, please contact your local Nomura representative. Is the Fed's independence coming to an end? See Appendix A-1 for disclaimers. Japanese version published on September 3, 2025 Summary: US President Donald Trump announced on 25 August that he was firing US Federal Reserve Governor Lisa Cook, alleg ...

Core Points - The abrupt resignation of former Federal Reserve Governor Adriana Kugler on August 1, 2025, has left the financial community in shock and confusion, especially following her unexplained absence at a key meeting two days prior [1][2][4] - Kugler's resignation comes just months before her term was set to expire in January 2026, and she did not provide a reason for her departure in her resignation letter [2][3] - Following her resignation, questions arose regarding whether Kugler was pressured to resign, particularly in light of political tensions surrounding the Federal Reserve [4][5] Group 1: Resignation Details - Kugler was nominated by former President Joe Biden and confirmed in 2023, with her term originally set to last until January 2026 [2] - In her resignation letter, Kugler stated her resignation would be effective August 8, 2025, but did not elaborate on the reasons for her departure [2][3] - The Federal Reserve announced that Kugler would return to Georgetown University as a professor, although her faculty page does not indicate she will be teaching any courses this fall [3] Group 2: Political Context - Former President Trump suggested that Kugler's resignation was due to disagreements with the Fed's interest rate policies, referring to Fed Chair Jerome Powell as "Too Late" [4][21] - The political climate surrounding the Federal Reserve has intensified, with accusations of misconduct directed at other board members, including Lisa Cook, which may reflect broader political strategies [6][9] - Trump's administration has been actively seeking to influence the Federal Reserve's composition, with Kugler's resignation providing an opportunity to nominate a successor, Stephen Miran [17][18] Group 3: Real Estate and Ethics Concerns - Questions have been raised regarding Kugler's real estate records, with discrepancies noted between her financial disclosures and state tax records regarding her primary residence [11][12][15] - Kugler has stated that inconsistencies in her records were due to errors by county tax officials, and she has not been accused of any wrongdoing [13][16] - The scrutiny of Kugler's real estate records is part of a broader pattern of political attacks targeting Federal Reserve officials, particularly those associated with the Biden administration [16]