On the morning of December 19th, the Asia Pacific stock market generally fell, with the Nikkei 225 index falling more than 1% and the Korean Composite Index falling more than 1.6%.
The Bank of Japan maintains the policy interest rate at 0.25% unchanged
The Federal Reserve announced a 25 basis point interest rate cut, causing a sharp drop in the US stock market overnight. On the morning of December 19th, the Asia Pacific stock market generally fell, with the Nikkei 225 index closing down 0.96%. As of press time, the Korean Composite Index fell 1.62%.
The latest news is that the Bank of Japan announced that it will maintain the policy interest rate at 0.25% unchanged.
The Bank of Japan stated that there is a moderate growth trend in private consumption. The Japanese economy has moderately recovered, but there are still some weaknesses. The uncertainty of Japan's economic and price prospects remains high. We must closely monitor the exchange rate, market trends, and their impact on the Japanese economy and prices. Due to changes in corporate salary and pricing behavior, exchange rate fluctuations may have a greater impact on inflation than in the past.
The Bank of Japan stated that its review committee member Naoki Tamura proposed to raise interest rates to 0.5%.
According to media reports, the Bank of Japan has released a comprehensive review of its past monetary easing measures, stating that it is appropriate for the bank to continue implementing monetary policy from the perspective of achieving the 2% price target in a sustained and stable manner. When considering the future approach of monetary policy, the central bank should not exclude any specific measures at present. When considering the future approach of monetary policy, the central bank should not exclude any specific measures at present. Long term interest rates have been lowered by about 1 percentage point since 2016. The impact of large-scale monetary easing on GDP is to promote GDP growth of 1.3% -1.8%.
The Federal Reserve is not allowed to own Bitcoin
Bitcoin fell sharply, dropping below $100000 at one point. In the past 24 hours, over 290000 people worldwide have sold out.
Some analysts suggest that Trump's plan to establish Bitcoin reserves may face resistance from the Federal Reserve. Federal Reserve Chairman Powell stated at a press conference after the monetary policy meeting that the Fed has no intention of participating in any plans by the government to stockpile large amounts of Bitcoin.
On December 18th, Federal Reserve Chairman Powell stated that the Fed has no intention of including Bitcoin on its balance sheet, emphasizing that under the Federal Reserve Act, they cannot hold Bitcoin and do not intend to seek changes to relevant laws. He mentioned that this issue should be considered by Congress, and the Federal Reserve will not actively seek to change existing regulations.
Powell's remarks have weakened the value of Bitcoin, which has surged along with other cryptocurrencies since Trump's victory in the November 5th election, doubling its price to over $100000 this year.
According to media reports, Trump previously proposed the establishment of the United States; quot; Strategic Bitcoin Reserve& quot; The concept has been proposed, but specific details have not yet been provided. Trump stated that the initial reserves may include about 200000 bitcoins confiscated from criminals, worth approximately $21 billion at current prices.
Republican Senator Cynthia Lummis proposed a bill suggesting that the US Treasury Department purchase 200000 bitcoins annually until reserves reach 1 million. The plan will be funded by the Federal Reserve's bank deposits and gold holdings.