March 18 (Bloomberg) -- Japanese Prime Minister Yasuo Fukuda will nominate a new central bank leadership today, leaving lawmakers one day to approve his plan and avoid a leadership vacuum.
The government will present its plan to lawmakers at 11 a.m. in Tokyo, according to a statement from both chambers of parliament read to reporters. Fukuda yesterday postponed his proposal after failing to reach an agreement with the opposition Democratic Party of Japan.
Failure by Fukuda to broker a solution with the DPJ could leave the central bank without leadership as a global stock markets plunge and the yen reaches a 12-year high. The U.S. Federal Reserve is expected to cut its benchmark interest rate by at least 1 percentage point at a meeting today after taking emergency action over the weekend to prevent a market meltdown.
``I didn't think that it would get so tangled up,'' Fukuda told reporters yesterday. ``I don't understand what the DPJ is thinking.''
Fukuda yesterday failed to meet a 6 p.m. deadline to propose a solution to the impasse. Japan's upper house last week rejected Fukuda's choice to head the Bank of Japan, Deputy Governor Toshiro Muto. Governor Toshihiko Fukui's term ends tomorrow.
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