Fed Chair Warsh signals readiness to raise rates, accelerating yen weakness and rise in long-term yields

Fed Chair Warsh signals no hesitation to raise rates, accelerating yen weakness and rise in long-term yields At the Jackson Hole symposium, Fed Chair Warsh said that if inflation remains high, 'there is still work to do,' making clear he would not shy away from raising rates. The yen fell to the 160-yen-per-dollar level for the first time since the Japan-U.S. coordinated intervention, long-term yields are approaching the 3% threshold, and in the U.S., 30-year Treasury yields reached their highest level in about 19 years. 1234

FSA considers on-site inspection of Sony Life, moves to clarify financial misconduct In response to financial misconduct involving a former sales employee taking money from customers, the Financial Services Agency is considering an on-site inspection of Sony Life. The sales practices and compliance issues in the insurance industry are likely to be called into question again. 5

Sharp rise in corporate prices triggers autumn wave of price hikes, over 4,500 items in September The core CPI rose 1.8% year-on-year in July, remaining in the 1% range for the seventh consecutive month, while energy prices turned upward for the first time in eight months. Companies are increasingly passing on higher costs from rising crude oil prices and yen weakness to selling prices, with price hikes planned for more than 4,500 items including food in September. 6

IHI posts first-quarter operating profit of 73.2 billion yen, 29% progress rate but weak share price IHI's first quarter of fiscal year ending March 2027 saw revenue of 374.5 billion yen and operating profit of 73.2 billion yen, a solid 29.3% progress toward the full-year forecast. While it holds an order backlog of 1.4873 trillion yen, the stock has been volatile, falling to 2,638 yen in August. 7

August U.S. employment report expected to rebound, September rate hike expectations in focus U.S. employment growth in August appears to have rebounded, and the labor market remains stable. The focus is on whether the Fed will proceed with a September rate hike to curb inflation, and the outcome could affect the yen exchange rate and the Nikkei average. 8