In last week’s contribution titled “Communication Breakdown,” I argued that both the Federal Reserve and the Bank of Japan (BOJ) find themselves in circumstances where “the immediate uncertainties are simply too great,” making it unlikely for clear policy signals to emerge from their respective meetings.
As predicted, both the BOJ and the FOMC meetings held on March 18-19 concluded with decisions to maintain existing policy interest rates.
A keyword prominently featured in the press conferences of Governor Kazuo Ueda and Chair Jerome Powell was “uncertainty.”
