Fed Chair Warsh to Lead First Rate Decision This Week; BoJ Expected to Hike, G7 Meets on Middle East

This week, the Federal Reserve under new chair Kevin Warsh will announce its interest rate decision on June 18, with markets expecting the central bank to hold rates steady. However, investor focus will shift to Warsh's forward guidance and his policy priorities, including potential plans to reduce the Fed's $6.7 trillion balance sheet. Meanwhile, the Bank of Japan is widely expected to raise rates by 25 basis points on June 17, potentially lifting Japan's benchmark rate to 1% for the first time since 1995, though BoJ Governor Kazuo Ueda will miss the meeting due to hospitalization. The G7 summit in Evian-les-Bains, France, convenes later this week, with Middle East and Ukraine dominating the agenda alongside discussions on economic security and reducing reliance on Chinese critical minerals.
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