Speaking with Fischer in NY
- little slack left in Japanese labor market
- Japan has full employment. Given current dissipation
- sees green shoots in Japanese wage expectations
- firms willingness to raise wages is encouraging
- expansionary fiscal policy can't replace reforms
- more firms willing to raise wages this year
- spring wage negotiations should give economic momentum
- Japan has a good chance of overcoming deflation
- will just policy as needed to reach inflation objectives
Clearly the focus is on wages in his comments. All the eggs are in the basket.
There is little reaction in the USDJPY.
