Potential Impact of Christopher Waller's Appointment on Interest Rates

Mizuho Securities' chief strategist Shoki Omori suggests that the appointment of Christopher Waller as the new Federal Reserve chair could lead to sustained pressure for interest rate cuts. According to NS3.AI, recent FOMC votes indicate that achieving these cuts may not be straightforward under Waller's leadership. The market appears to be overestimating the speed at which rate cuts will occur, likely resulting in a slower pace than anticipated. This scenario is expected to contribute to an increase in the USD/JPY exchange rate.