Fed Officials Signal Flexible Policy as Core Inflation Slows; BOJ Prepares for Possible Yen Intervention

According to Jin10 data, Federal Reserve officials signaled a flexible policy stance on August 5 as core inflation shows signs of moderating. Treasury Secretary Bessent stated that Fed Chair Powell aims to preserve options for optimal outcomes, while core inflation is decelerating with energy impacts excluded. Fed Governor Barson indicated current policy carries "moderate restraint," though officials remain cautious, with some, like Fed Governor Schmidt, calling for tighter monetary conditions to combat inflation.

Meanwhile, Japan's Finance Minister pledged full support for yen stabilization, indicating the BOJ may intervene if the currency weakens further. Separately, South Korea's central bank signaled potential additional policy actions beyond recent rate hikes. In data releases, Indonesia's second-quarter GDP grew 5.29%, exceeding expectations, while India's central bank held rates steady for the fourth consecutive meeting.