Why Is the Bank of Japan Persistent in Its Rate Policy?

The December BOJ minutes revealed a notable division among board members regarding interest rates. Some emphasized that Japan’s current policy rate remains abnormally low by global standards. Additionally, the low-rate environment has increased pressure on the yen and affected inflation transmission.

In the latest meeting, the central bank raised its main policy rate to 0.75%, the highest in 30 years. Yet, when adjusted for inflation, some board members still consider it insufficient. Consequently, additional rate hikes in the coming months may be inevitable.

One member noted, “Timing interest rate increases appropriately can limit long-term inflationary pressures.” This reflects a more controlled yet decisive approach to policy normalization.

Yen Depreciation and Market Balance

Despite rate hikes, the Japanese yen has dropped to multi-decade lows, creating an unexpected conflict for markets. Typically, higher interest rates support the currency, but capital outflows have remained dominant.

BOJ officials acknowledged that currency fluctuations are increasingly impacting domestic prices. As a result, exchange rate stability has become an indirect policy objective. However, short-term volatility could rise as rates continue to adjust.

Most economists expect another rate step within six months, with the terminal rate projected to reach 1.25–1.50% by 2027.

Why This Matters for the Crypto Market

Global investors have long used the yen for low-cost borrowing, channeling funds into higher-yielding assets such as cryptocurrencies. Rising rates could reduce the attractiveness of these carry trades.

In such a scenario, the unwinding of leveraged positions may accelerate, triggering sharp crypto price swings. Historical data shows that BOJ decisions have previously led to significant Bitcoin declines.

• After the March and July 2024 decisions, BTC fell over 20%

• The January 2025 rate hike caused a drop exceeding 30%

Thus, BOJ policy signals remain closely watched by crypto investors. Future volatility will likely be highly sensitive to the central bank’s next moves.

The upcoming BOJ meeting will be critical in determining the yen–crypto correlation.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post How Japan Interest Rate Decisions Previously Shook Crypto appeared first on Coin Engineer.

Pulte’s allegations revolve around the planned modernization project of the Fed’s nearly century-old headquarters. Powell had stated that the building would not include “VIP dining rooms, new marble, private elevators, or rooftop gardens.” However, documents submitted to the National Capital Planning Commission clearly show “landscaped and occupiable rooftop terraces” as part of the plan. 

Tension Rises Between Renovation Project and Interest Rate Policy Criticism 

The contradictions in Powell’s statements are not limited to architectural details. FHFA Director Pulte emphasizes that the Fed’s interest rate policies have severely damaged the housing market. 

In a statement shared on X , Pulte said: 

“This is nothing but abuse of power and warrants removal ‘for cause.’ Federal Reserve Chair Powell must be immediately investigated by Congress. You have cost the U.S. a fortune. And you continue to do so.” 

Pulte stated that the Fed’s renovation project created an image of an out-of-touch and luxury-focused institution. He stressed that this approach undermines public trust. “This is nothing but negligence of duty and should be considered ‘for cause’ grounds for Powell’s removal,” he said. He also mentioned that the Fed was “too late” in lowering interest rates. Furthermore, he said these statements alone justify Powell’s removal “for cause.” 

U.S. Federal Housing and the Fannie Mae and Freddie Mac Chairman Calls on Congress to Investigate Jerome Powell pic.twitter.com/E6P9MobJOa

— Pulte (@pulte) July 2, 2025

Senate Banking Committee Chair Tim Scott also asked Powell direct questions about the project. Meanwhile, Powell denies media comparisons to the “Palace of Versailles,” arguing there are no extravagant elements in the project. However, since the planning documents contradict Powell’s statements, lawmakers are expected to evaluate these conflicting claims. 

Pressure on the Fed’s Independence Increases 

Pulte’s statements are viewed as part of the Trump administration’s systematic pressure campaign against Fed Chair Powell. Meanwhile, President Trump has also expressed his desire to replace Powell with another candidate. 

How Congress responds to FHFA’s request in the coming days will affect not only Powell’s future but also the Fed’s independence. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Pulte: “Powell Is Lying, Immediate Investigation Must Be Launched!”  appeared first on Coin Engineer.

Message on Interest Rate Decisions

Powell stated that the Fed will not rush to lower interest rates, saying, “We can wait for more clarity.” He mentioned that they expect inflation to reach 2%, but inflation expectations have risen due to the impact of tariffs.

Regarding the economy and labor market, Powell noted, “Many indicators show that the labor market is solid and balanced.” He also pointed out that significant progress has been made in reducing inflation, but there are signs of a slowdown in consumer spending. He emphasized that uncertainty remains regarding the impact of policies.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

One of the critical messages for the markets was, “Fed policy is not on a pre-determined path. If inflation progress halts, we may continue tight policies, but if the labor market unexpectedly weakens or inflation falls, we could ease.” Powell also added, “We will look at the possibility of inflation exceeding our target in the medium term, and despite uncertainty, the U.S. economy is in a good position.”

Customs Tariffs and Inflation Expectations

The remarks on customs tariffs were particularly noteworthy. Powell said, “It is still very uncertain how long customs tariffs will be applied.” He also stated that there is no need to redefine price stability.

Crypto markets reacted sensitively to Powell‘s statements. The lack of a clear message regarding interest rate cuts affected the movements of major digital assets like Bitcoin and Ethereum. In the coming days, as clarity on Fed policies emerges, more pronounced price movements may be observed in the markets.

In the coming days, market volatility may continue. It will be important for crypto investors to move cautiously during this period of uncertainty.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Powell’s Statements Shook the Markets: Is a Rally Ahead? appeared first on Coin Engineer.

Non-Farm Payrolls Fell Short of Expectations

The Non-Farm Payrolls data in the US was reported at 143K, significantly below the economists’ forecast of 169K. This may indicate a slowdown in the labor market.

Unemployment Rate Declined

The US Unemployment Rate came in at 4.0%, compared to the expected 4.1%. The lower-than-expected unemployment rate suggests a resilient labor market.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Average Hourly Earnings Increased

Workers’ Average Hourly Earnings rose by 0.5%, exceeding the 0.3% expectation. This increase in wages could intensify inflationary pressures and impact the Federal Reserve’s interest rate policy.

How Will Markets React?

• Bitcoin and crypto markets may experience volatility following the employment data.
• Lower job growth signals economic cooling, while rising wages bring inflation risks into focus.
• These figures are crucial for the FED’s rate decision in the coming months.

Market fluctuations will be closely monitored in the days ahead.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post US Data Announced! Will Interest Rate Fall? appeared first on Coin Engineer.