Bessent Backs Ueda: Treasury Secretary Expects Japan Central Banker to 'Do What is Best'

U.S. Treasury Secretary Scott Bessent expressed confidence in Bank of Japan Governor Kazuo Ueda's ability to manage Japan's economy, stating that he is 'sure' Ueda will take the right actions.

In an interview with public broadcaster NHK, Bessent attributed part of Japan's inflation increase to a weak yen and high energy prices. He predicted that as energy prices decline and excessive yen weakness is addressed, Japan's inflation will slow down, leading to a 'virtuous cycle' for the country and its currency.

Bessent also discussed the recent joint yen-buying intervention between Japan and the United States, stating that it aims to prevent the yen's weakness from spreading instability across Asian currencies. He emphasized his confidence in Ueda, saying he has known him for 15 years and believes he is 'market-savvy'.