Fed Pauses Rate Hikes Until 2027; Japan Eyes Interest Rate Lift
The Federal Reserve's interest rate policy has been extended into 2027, according to ING economists. This projection is based on recent US job growth data that has shown a cooling trend.
Meanwhile, Japan faces pressure to hike its interest rates in September due to stubborn wholesale inflation and the yen remaining near the 160 per dollar level.
Bank of Japan Governor Kazuo Ueda has hinted at a potential interest rate increase in September. If implemented, this could disrupt global yen-funded carry trades by increasing the cost of borrowing yen.