If President Trump's two expected nominees to the Fed board are confirmed, and the voting records of non-board voters this year persist, the already accommodative U.S. central bank may be even more inclined to backstop the economy and markets, which would add support to stocks and positively correlated USD/JPY.
At least one of the two Fed board nominees, Waller, is seen likely getting the nod given his credentials and lack of controversial comments regarding policy.
He's also expected to err on the side of accommodative policy nL1N29L254.
Shelton may have a harder time getting through nFWN24X1KK, but if she did, it's assumed she would favor easing.
Moreover, the rotation of regional Fed presidents into and out of voting status may also hue somewhat more toward easing nL1N28E1E8, though it's clear most policymakers would rather not have to adjust rates much if at all this year.
The hope is the economy can heat up a bit and allow inflation and growth expectations to normalize higher and closer to the Fed's target, or even past it to make up for repeated shortfalls.
With little sign of inflation rebounding, though, the upshot might be just more support for financial asset inflation and a higher USD/JPY.
Chart: Click here