Professor Ito Says Fed Policy Path Is Best Scenario

The video discusses the Federal Reserve's plan to hike interest rates and its implications for the economy, including potential risks like the taper tantrum. It also examines the impact of these actions on other central banks, particularly the Bank of Japan, and how interest rate differentials could affect the yen. Additionally, the video explores Japan's labor market, highlighting labor shortages, wage increases, and the focus on job security in wage negotiations.

What factors are influencing wage negotiations in Japan as mentioned in the text?

What potential risks are associated with the Federal Reserve's balance sheet reduction?