Mizuho Bank: If Warsh Becomes Fed Chair, Market Will Feel Sustained Pressure for Rate Cuts

Odaily News Mizuho Securities Chief Strategist Shoki Omori stated that if Warsh is elected as the new Federal Reserve Chair, the market will feel sustained pressure for interest rate cuts. However, considering the FOMC voting situation from the last meeting, it would not be easy for him to implement cuts. The market has misjudged the pace of rate cuts, and it is expected that the Fed's rate cuts will be slower than what the market anticipates or hopes for. Meanwhile, the market perceives Warsh as more dovish than Hassett, which is why we are seeing the USD/JPY exchange rate rise. (Jin10