Market Shifts Amid Japan's Earthquake and Fed Speculations

U.S. Treasury yields and the dollar rose following a powerful earthquake in Japan, causing investors to reassess market impacts. The Fed is expected to cut interest rates, but potential internal divisions are causing speculation. Meanwhile, the Bank of Japan may delay decisions due to the quake's aftermath.


Devdiscourse News Desk | Updated: 08-12-2025 23:03 IST | Created: 08-12-2025 23:03 IST
Market Shifts Amid Japan's Earthquake and Fed Speculations
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On Monday, financial markets reacted to a powerful earthquake in Japan that triggered tsunami warnings and evacuation orders. U.S. Treasury yields rose alongside the dollar, while major stock indexes experienced slight declines.

Amid these developments, anticipation grows for a Federal Reserve announcement with an expected interest rate cut, though potential divisions within the Fed have stirred investor speculation. The meeting could be one of the most contentious since 2019.

The Bank of Japan may re-evaluate its upcoming monetary policy meeting due to the earthquake's impact. Globally, central banks in Canada, Switzerland, and Australia are maintaining steady policies amidst fluctuating markets and geopolitical tensions.

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