Bessent Declares End of Abenomics, Pressures BOJ on Rate Hikes

US Treasury Secretary Scott Bessent declared the end of Abenomics, Japan's decades-long experiment with ultra-loose monetary policy and aggressive fiscal stimulus. In a series of pointed remarks, Bessent signaled that Washington no longer supports Tokyo's reflationary policies.

Bessent praised the legacy of Abenomics, acknowledging its role in pulling Japan out of its deflationary spiral. However, he argued that the policy has run its course and must be retired to prevent structural imbalances.

The Bank of Japan now faces intense external and internal pressure to accelerate its policy normalization. Former BOJ executive director Takashi Miwa suggests that Governor Kazuo Ueda will likely implement a 25 basis point hike at the next policy meeting to appease international critics.