Editorial

15:00 JST, March 22, 2025

The future of not only the U.S. economy but also the global economy is filled with an extraordinary sense of uncertainty due to a spree of high tariff measures imposed by U.S. President Donald Trump.

Both the U.S. Federal Reserve Board and the Bank of Japan need to check economic trends and steer monetary policy in a flexible manner.

The Fed has decided to keep its policy interest rate unchanged in the 4.25%-4.50% per year range. It indicated that it expects to reduce the rate by a typical amount twice within the year. The Fed revised its growth rate forecast downward from December last year, but it predicted that prices would rise.

At a press conference, Chairman Jerome Powell emphasized, “Uncertainty today is unusually elevated” due to the high........

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