Bank of Japan Yield-Curve Policy, US Inflation: 3-Minute MLIV

The video discusses the yen's strength and potential changes in Japanese monetary policy, focusing on Plan A and Plan B scenarios. It highlights the role of the new Bank of Japan governor and the impact of inflation pressures. The CPI report is analyzed, emphasizing its significance for markets and Jerome Powell. Market expectations for core inflation and potential reactions are explored, with insights from JP Morgan on possible outcomes.

What is the main expectation for Japan's yield curve control policy under the new governor?

• No changes expected

• Gradual changes in the second half of the year

• Immediate removal of the policy

• Complete overhaul of the policy

What is the significance of the upcoming CPI report for the markets?

• It is irrelevant to current economic conditions

• It will only affect housing markets

• It is a key focus for Jerome Powell and the markets

• It is expected to have no impact

What is the market's reaction expected to be if the CPI report shows a higher than expected inflation rate?

• Yields are expected to remain stable

• Yields are expected to decrease

• No reaction is expected

• Yields are expected to increase

What is considered a significant beat in the CPI report according to JP Morgan?

• Anything below 6%

• Anything above 6.5%

• Anything above 5%

• Anything above 7%

What core month-on-month figure is expected to upset the market?

• 0.3%

• 0.2%

• 0.5%

• 0.4%