Fed and BOJ actions could trigger sharp market volatility

In the Asian session on Tuesday (May 30), the US dollar fell against the yen, temporarily reporting 140.25, a decrease of 0.14%. Japan’s third-largest lender is “tightening up” investments. He expects actions by the Fed and the Bank of Japan to trigger wild market volatility and wants to be prepared for that.

The latest news from the Bank of Japan:

Koshimizu thinks the BOJ could raise the ceiling on its yield-curve control program, or cancel it entirely, provided the financial system doesn’t suffer a major shock like a severe U.S. recession. After those actions, the BOJ may end its negative interest rate policy, he said. “The Japanese economy and prices have started to change. Monetary policy may adjust accordingly sooner or later,” he said.