Markets Brace for Possible Japan Yen Intervention After Fed Turns Hawkish at Warsh Debut

The Federal Reserve struck a hawkish tone at new governor Kevin Warsh’s first meeting, lifting U.S. Treasury yields and worsening the yen’s rate disadvantage. The yen has slid toward levels that previously prompted Japan’s finance ministry to intervene, prompting expectations of an emergency move. The development is rippling through FX markets, particularly affecting the dollar-yen pair and the yen.