JACKSON HOLE, Wyoming –
The U.S. Federal Reserve’s dovish move is likely to give the Bank of Japan some respite in its battle to rein in the weak yen, but could also complicate efforts to raise interest rates if the two central banks’ divergent policy stances unnerve markets.
At an annual symposium in Jackson Hole, Wyoming, Fed Chairman Jerome Powell said Friday that “the time has come” to cut rates as rising risks to the labor market leave no room for further weakening, giving explicit approval to impending policy easing.
The comments came hours after BOJ Governor Kazuo Ueda told parliament that while the BOJ will monitor the impact of volatile markets, it will continue to raise interest rates if inflation remains on track to sustainably meet its 2% target.
