Identifier
Created
Classification
Origin
07TOKYO5109
2007-11-05 05:08:00
UNCLASSIFIED
Embassy Tokyo
Cable title:
TOKYO MEDIA REACTION - US RATE CUT
how-toVZCZCXRO7603 PP RUEHFK RUEHKSO RUEHNAG RUEHNH DE RUEHKO #5109 3090508 ZNR UUUUU ZZH P 050508Z NOV 07 FM AMEMBASSY TOKYO TO RUEHC/SECSTATE WASHDC PRIORITY 9233 RUEKJCS/SECDEF WASHDC PRIORITY RUCPDOC/USDOC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY RHMFIUU/USFJ PRIORITY INFO RUEHFK/AMCONSUL FUKUOKA 4197 RUEHNH/AMCONSUL NAHA 6604 RUEHNAG/AMCONSUL NAGOYA 3024 RUEHKSO/AMCONSUL SAPPORO 4875 RUEHOK/AMCONSUL OSAKA KOBE 7864 RUEHBJ/AMEMBASSY BEIJING 9932 RUEHMO/AMEMBASSY MOSCOW 1954 RUEHUL/AMEMBASSY SEOUL 5988 RUCNDT/USMISSION USUN NEW YORK 6784 RHEHAAA/NSC WASHDC
UNCLAS TOKYO 005109
SIPDIS
SIPDIS
STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - US RATE CUT
LEAD STORIES: Most Friday papers led with the
suspension of the MSDF refueling operation in the
Indian Ocean.
"Fed on Tightrope" The business-oriented Nikkei
editorialized (11/2): "The US Federal Reserve Board
decided at its Federal Open Market Committee meeting on
Wednesday to make an additional cut in the federal
funds rate. Although the move is aimed at preparing for
a possible slowdown in the US economy following the
recent turmoil in the housing market, speculative money
is flowing into the commodities market and pushing up
the prices of oil and gold. The Fed is facing a
challenge to prevent inflation from undermining
international confidence in the US economy.... If the
influx of money into the commodities market unleashes
investors' concern about inflation risks, international
confidence in the Fed's monetary policy could be
eroded, and foreign investment in the US could
decrease. The turmoil in the US and global economies
could continue unless the Fed properly deals with the
housing and commodities markets. The Federal Reserve
Board needs to make a clear judgment and take prompt
action."
SCHIEFFER