BOJ's Ueda warns on inflation as Fed's Warsh stays quiet on rates

· Economy · United States · Japan

Bank of Japan Governor Kazuo Ueda said inflation cannot be allowed to rise further, signaling continued pressure on monetary policy in Japan. Separately, Federal Reserve Chairman Kevin Warsh withheld any signal on the Fed's October meeting, praising recent "synchronous tightening" by central banks against inflation. Warsh also described AI as potentially the most consequential change to the US and global economy in his lifetime, calling it a positive supply shock over the medium term. The dollar had its worst week in a month after Warsh's remarks, while the euro snapped a five-week losing streak. Gold was steady as rate-hike bets eased.

Why it matters：Conflicting signals from the world's major central banks on inflation and rates will drive currency, bond and asset markets globally in the weeks ahead.

Key points

  • BOJ Governor Ueda said inflation cannot be allowed to rise further.
  • Fed Chair Warsh gave no signal on the October meeting.
  • Warsh called AI a potentially positive supply shock over the medium term.

Sources (original reporting)

More stories from this day