{"id":59017,"date":"2026-02-24T03:38:30","date_gmt":"2026-02-24T07:38:30","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/"},"modified":"2026-02-24T03:38:30","modified_gmt":"2026-02-24T07:38:30","slug":"yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/","title":{"rendered":"Yen Slumps as Japan PM Cautions on Rates; Dimon Warns of \u2018Pre-Crisis\u2019 Risks"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/#Japans_PM_Pressures_BOJ_Yen_Retreats\" >Japan\u2019s PM Pressures BOJ; Yen Retreats<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/#Dimon_Warns_of_Banking_Sector_Excesses\" >Dimon Warns of Banking Sector Excesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/#Thailand_Targets_27_Growth_with_Policy_Coordination\" >Thailand Targets 2.7% Growth with Policy Coordination<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/#Merz_Leads_German_Business_Push_in_China\" >Merz Leads German Business Push in China<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/yen-slumps-as-japan-pm-cautions-on-rates-dimon-warns-of-pre-crisis-risks\/59017\/#Market_Snapshot_and_Economic_Data\" >Market Snapshot and Economic Data<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>The Japanese Yen fell sharply<\/strong> after Prime Minister Sanae Takaichi expressed apprehension regarding further <strong>Bank of Japan (BOJ)<\/strong> interest rate increases, pushing <strong>USD\/JPY to 155.455 (+0.55%)<\/strong> and <strong>EUR\/JPY to 183.45 (+0.58%)<\/strong>.<\/li>\n<li><strong>JPMorgan Chase (<a href=\"\/stock\/JPM\">JPM<\/a>) CEO Jamie Dimon<\/strong> warned of parallels to the <strong>pre-2008 financial crisis era<\/strong>, noting that some rivals are doing <strong>&quot;dumb things&quot;<\/strong> by taking excessive risks to boost net interest income.<\/li>\n<li><strong>Thailand\u2019s central bank<\/strong> chief projected <strong>2.7% economic growth<\/strong> for 2026, while the Finance Minister announced plans for <strong>omnibus legislation<\/strong> to streamline and boost foreign investment.<\/li>\n<li><strong>German Chancellor Friedrich Merz<\/strong> arrived in China leading a delegation of <strong>30 top executives<\/strong>, including leaders from Mercedes-Benz (<a href=\"\/stock\/MBG\">MBG<\/a>) and Siemens Energy (<a href=\"\/stock\/ENR\">ENR<\/a>), to seek a &quot;strategic partnership&quot; amid rising global trade tensions.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Japans_PM_Pressures_BOJ_Yen_Retreats\"><\/span>Japan\u2019s PM Pressures BOJ; Yen Retreats<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Japanese Yen faced significant selling pressure on Tuesday after <strong>Prime Minister Sanae Takaichi<\/strong> voiced concerns to <strong>BOJ Governor Kazuo Ueda<\/strong> about the potential negative impact of further interest rate hikes. According to a report from the <em>Mainichi<\/em> daily, Takaichi\u2019s apprehension stems from a desire to prioritize <strong>fiscal expansion<\/strong> and domestic demand over rapid monetary normalization.<\/p>\n<p>Market reaction was swift, with <strong>USD\/JPY rising 0.55% to 155.455<\/strong> and <strong>EUR\/JPY climbing 0.58% to 183.45<\/strong>. <em>Analysts suggest that the Prime Minister&#39;s stance creates a significant hurdle for the BOJ<\/em>, which had been signaling a move toward a <strong>1.0% policy rate<\/strong> by spring to combat persistent inflation and currency weakness.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dimon_Warns_of_Banking_Sector_Excesses\"><\/span>Dimon Warns of Banking Sector Excesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a wide-ranging update for investors, <strong>Jamie Dimon<\/strong>, CEO of JPMorgan Chase (<a href=\"\/stock\/JPM\">JPM<\/a>), expressed high anxiety over current market conditions, comparing the current environment to the <strong>2005\u20132007 period<\/strong>. Dimon noted that a &quot;rising tide&quot; is currently lifting all boats, leading some competitors to engage in <strong>risky lending practices<\/strong> to inflate their <strong>Net Interest Income (NII)<\/strong>.<\/p>\n<p>Dimon cautioned that the credit cycle will eventually turn, pointing to recent &quot;cockroaches&quot; in the auto and car-parts sectors as early warning signs. He also highlighted the <strong>software sector<\/strong> as a potential source of future credit surprises due to the rapid disruption caused by <strong>Artificial Intelligence (AI)<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Thailand_Targets_27_Growth_with_Policy_Coordination\"><\/span>Thailand Targets 2.7% Growth with Policy Coordination<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Thailand\u2019s central bank governor, <strong>Vitai Ratanakorn<\/strong>, emphasized the necessity of tight coordination between <strong>monetary and fiscal policy<\/strong> to ensure the economy hits its <strong>2.7% expansion target<\/strong> this year. The central bank plans to maintain an accommodative stance to support a recovery that has been hampered by high household debt and shifting global trade dynamics.<\/p>\n<p>To complement these efforts, the Thai Finance Minister announced the drafting of <strong>omnibus legislation<\/strong> designed to eliminate bureaucratic hurdles and offer new incentives for investors. This legislative push aims to capitalize on a <strong>40% surge in Foreign Direct Investment (FDI)<\/strong> seen in 2025, particularly in the green manufacturing and technology sectors.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Merz_Leads_German_Business_Push_in_China\"><\/span>Merz Leads German Business Push in China<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>German Chancellor <strong>Friedrich Merz<\/strong> began a high-stakes four-day visit to China, accompanied by a delegation of approximately <strong>30 company executives<\/strong>. The delegation includes high-level representatives from major industrial players such as Mercedes-Benz (<a href=\"\/stock\/MBG\">MBG<\/a>) and Siemens Energy (<a href=\"\/stock\/ENR\">ENR<\/a>).<\/p>\n<p>The visit is seen as a critical &quot;stress test&quot; for <strong>Sino-German relations<\/strong> as Berlin attempts to balance its deep economic ties with Beijing against the need for <strong>&quot;strategic autonomy.&quot;<\/strong> Merz is expected to meet with President <strong>Xi Jinping<\/strong> to discuss trade cooperation, even as Germany seeks to diversify its supply chains to reduce dependency on the Chinese market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Snapshot_and_Economic_Data\"><\/span>Market Snapshot and Economic Data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>European equity markets showed a cautious start on Tuesday, with <strong>EuroStoxx 50 futures up 0.15%<\/strong> and the <strong>DAX up 0.12%<\/strong>, while the <strong>FTSE 100 futures slipped 0.08%<\/strong>. In the basic materials sector, <strong>Deutsche Bank<\/strong> lowered its price target for Johnson Matthey (<a href=\"\/stock\/JMAT\">JMAT<\/a>) to <strong>2,120p from 2,400p<\/strong>, reflecting a more conservative outlook on industrial demand.<\/p>\n<p>On the data front, <strong>South Africa\u2019s Leading Indicator<\/strong> for December fell to <strong>117.2<\/strong> from a previous 118.4, signaling potential cooling in the region&#39;s economic momentum. Conversely, <strong>Norway\u2019s Credit Indicator<\/strong> showed steady year-on-year growth of <strong>4.4%<\/strong> in January, suggesting stable credit conditions in the Nordic economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Japanese Yen fell sharply after Prime Minister Sanae Takaichi expressed apprehension regarding further Bank of Japan (BOJ) 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