Kevin Warsh’s first FOMC meeting as Fed Chair takes place on 16 June, but focus may also be on Japan.
The
$BOJ is expected to raise rates to 1% for the first time since 1995, potentially disrupting the yen carry trade and prompting some repatriation of Japanese capital from overseas assets.
That could drive volatility across
$USD/
$JPY, equities, bonds, and broader global financial conditions, with knock-on implications for Fed expectations.
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