Bessent Calms Yen Fears, Backs BOJ Policy under Takaichi
US Treasury Secretary Scott Bessent has downplayed recent yen movements, stating that they are 'pretty well contained' and not disorderly. This assessment comes after the Japanese currency slipped below the 160-per-dollar level on Friday, prompting market attention to whether a joint Japan-US intervention would occur again.
Bessent's comments were made in an interview with Reuters, where he also expressed confidence that Bank of Japan Governor Kazuo Ueda will 'do the right thing' on monetary policy. When asked about the possibility of consecutive interest rate hikes, Bessent stated that he expects the BOJ to consider such measures under Prime Minister Sanae Takaichi's backing.
Bessent also noted that Japan has 'conquered' deflation and shifted towards a more shareholder-friendly economic policy, dubbed 'Takaichi-nomics', which aims to reduce government intervention. He recommended that Japan sit back and enjoy the success of past policies aimed at rejuvenating its economy, rather than intervening further.