Yen Rises Amid Speculation of More Intervention After US Support

• Coordinated yen intervention by Japan and the US is seen as a smarter move to limit USD/JPY upside and curb speculation.
• US Treasury's use of Euros for intervention circumvented issues with the 'strong dollar policy'.
• The Fed's less transparent communication style under Chair Warsh (likely Powell) is creating increased market volatility and uncertainty.
• Underlying inflation remains sticky due to energy and food prices, with physical shortages of goods (including oil) identified as a significant, underpriced macro risk.

The chief economist discusses the recent coordinated yen intervention by Japan and the US, highlighting its cleverness in deterring speculation and avoiding strong dollar policy implications. She also addresses the Fed's evolving communication strategy, persistent inflation drivers, and identifies physical goods shortages as a major underpriced macro risk.