More Hawkish Fed Stance Gives Kuroda a Push for Time Being
- Divergence between BOJ and Fed is likely to weaken the yen
- Rising U.S. yields may put pressure on BOJ’s yield target
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The Federal Reserve has made Bank of Japan Governor Haruhiko Kuroda’s job a bit easier by confirming it’s about to start paring its balance sheet and push ahead with interest rate hikes. But the Fed could complicate matters for the BOJ before too long.
Just hours after the U.S. central bank’s latest meeting, the BOJ said it would stay the course with its own monetary easing program, even as the Fed heads further down the path of policy normalization and the European Central Bank looks ready to turn that way.