FMI analyzes the high probability of the Fed's intent to normalize the monetary policy in June this year.
Richard reports that the Bank of Japan Governor has raised the grey flag for achieving the 2% inflation target in two years.
The Bank of Japan (BOJ) is pulling out all the stops in order to make good on its promise of achieving 2% inflation toward the latter half of fiscal 2015 (which ends April 2016).
In the face of a growing loss of faith in the Bank of Japan’s ability to either achieve its 2% inflation target in the foreseeable future or to help boost real growth—and even snarky passages in the press about BOJ Governor Haruhiko Kuroda “stealthily extending the deadline for exiting deflation”—Kuroda threw a “Hail Mary” pass.
When some powerful leaders of the Liberal Democratic Party (LDP) complain that the “First Arrow” of Abenomics (monetary ease and yen deprecation) is causing more harm than good, you know that the credibility of Abenomics has reached a turning point. And when this coincides with an indicator from the Cabinet Office that suggests the risk of an out-and-out recession following the April hike in the consumption tax, then you know that the bloom is really off the rose.
FMI’s commentary on the dueling Labor Market Conditions Indices released this week by the Federal Reserve and the Kansas City Fed.