Expectations for an widening of the U.S.-Japan interest rate differential have resurfaced after the Federal Reserve raised interest rates by 25 basis points and delivered hawkish signals, causing USD/JPY to fall by 1% to 156.42 at one point. The market is now focused on what policy signals Bank of Japan Governor Kazuo Ueda will send after the September 17-18 policy meeting, and whether he will hint at subsequent consecutive rate hikes or a one-time 50 basis point hike. Federal Reserve Chairman Warsh stated that inflation remains too high and has persisted for too long, suggesting the possibility of further rate hikes in the future.