NEW YORK -- As new Bank of Japan Gov. Kazuo Ueda takes the reins from predecessor Haruhiko Kuroda, a former president of the Federal Reserve Bank of New York argues that he should stay the course on targeting sustained 2% inflation.
Though prices are now up more than 4% annually, Japan has experienced "no meaningful acceleration in wages in recent years despite a tight labor market," William Dudley told Nikkei, noting that such wage growth usually is necessary for stable inflation. "Now the BOJ is trying to confirm that the [current] inflation will lead to higher inflation expectations and higher wages."
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