Bessent Backs BOJ's Ueda to Make 'Right Thing' on Monetary Policy
US Treasury Secretary Scott Bessent has expressed his confidence in Bank of Japan Governor Kazuo Ueda's ability to make sound monetary policy decisions. In an interview, Bessent stated that he expects Ueda 'to do the right thing' when it comes to addressing the weak yen and its impact on economic growth.
Bessent was asked whether the BOJ should consider consecutive interest rate hikes to combat the weak yen, but instead of providing a direct answer, he chose to reflect on the effectiveness of Abenomics, a reflationary program implemented by former Prime Minister Shinzo Abe. 'I'm not going to tell them what to do,' Bessent said.
His comments come at a time when Japan is facing economic challenges, and many are closely watching Ueda's decision-making process as he navigates the complex task of stimulating growth without destabilizing the currency.