Bessent Calls for End to Japan's Reflationary Policy

U.S. Treasury Secretary Scott Bessent has called on Japan to end its reflationary policy, which includes massive monetary easing aimed at pulling the country out of deflation.

Bessent made this statement during a press conference in Asheville, North Carolina, following a two-day meeting of Group of 20 finance ministers and central bank chiefs. He praised 'Abenomics,' the reflationary policy mix introduced by former Prime Minister Shinzo Abe, as 'a tremendous success.' However, he suggested that Japan should stop the reflation process.

Bessent expressed support for Japan's efforts to address the undervaluation of the yen during a meeting with Bank of Japan Governor Kazuo Ueda on Sunday. The Treasury Department published a readout of the meeting, stating that Bessent 'expressed strong support' for Japan's actions.