US Treasury’s Bessent calls on Japan to boost yen through rate increases
US Treasury Secretary Scott Bessent has urged Japan to strengthen the yen through interest rate increases, signaling expectations for a Bank of Japan policy shift in September. Japanese officials and US representatives have met to discuss maintaining market stability and fiscal sustainability.
Why it matters
Coordinated international financial policy between the US and Japan is critical for maintaining global currency stability and managing inflation.
Japanese Finance Minister Satsuki Katayama said on Monday she met US Treasury Secretary Scott Bessent and agreed that orderly yen movement is critical for global market stability.
The two countries also confirmed that continued, cooperative measures would contribute to this common goal, Katayama told reporters after attending the Group of 20 finance leaders’ gathering. She declined to comment when asked if recent yen moves were orderly.
Katayama and Bessent discussed Japan’s financial policy, the earlier coordinated yen intervention and other topics, a senior Japanese official present at the meeting told reporters.
On Monday, Scott Bessent said he believed Japan’s government and central bank would take action leading to a stronger yen, signalling a strong chance of a Bank of Japan (BOJ) interest rate increases in September.
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