Wall Street spends this week on the Federal Reserve, but MarketWatch columnist Charlie Garcia argues the central-bank decision that actually reaches American 401(k) plans comes from Tokyo on Friday. His case: Japan is edging toward the exit on buying America's debt, and this week's Bank of Japan meeting is the tell.
A Bank of Japan meeting, not a Federal Reserve one, is the central-bank event that reaches American 401(k) plans this week — the decision lands on Friday, and it comes from Tokyo, MarketWatch columnist Charlie Garcia writes.
Garcia calls this the loudest central-bank week of the summer and says Wall Street is watching the wrong meeting. Everyone will hang on the words of Federal Reserve Chair Kevin Warsh, a man who has made a public point of saying as little as possible.
Tokyo takes the spotlight instead because Japan is edging toward the exit on buying America's debt, according to the column. America's quietest lender is now fighting a bond crisis at home, and Garcia treats the Bank of Japan meeting as the tell — the point where the sleepiest central bank on Earth becomes the one that matters.
So if the Bank of Japan signals more rate hikes, the message is simple, Garcia writes: America's biggest foreign lender wants its money at home.
Source: MarketWatch (snippet-based)
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