Fed Officials Discuss Weaker Yen at January Meeting

Washington, Feb. 18 (Jiji Press)–U.S. Federal Reserve officials discussed the impact of a weaker yen and higher Japanese government bond yields when they met in late January, the minutes of the meeting showed Wednesday. “A few participants noted the need to monitor potential spillovers from volatility in global bond markets and foreign exchange,” according to the minutes of the central bank’s Jan 27-28 monetary policy meeting. The Fed’s staff reported that JGB yields “increased notably because of increased political uncertainty and investor concerns over fiscal prospects,” the minutes showed. The staff also noted that the yen appreciated “amid speculation among market participants that authorities may intervene in foreign exchange markets to support the yen,” according to the minutes. Shortly before the Fed meeting, Japanese and U.S. authorities are believed to have carried out so-called rate checks, seen as a signal of their readiness to intervene in foreign exchange markets. U.S. Treasury Secretary Scott Bessent late last month said Japanese authorities “will begin saying the things that will calm the market down.” END [Copyright The Jiji Press, Ltd.]