Bessent Downplays Disorderly Yen Moves, Backs BOJ's Ueda
US Treasury Secretary Scott Bessent said recent yen movements are 'pretty well contained' and not disorderly, downplaying concerns about a potential intervention. This comes after the Japanese currency slid below the 160-per-dollar level on Friday.
Bessent, speaking to Reuters in an interview, expressed confidence that Bank of Japan Governor Kazuo Ueda will do the right thing with monetary policy, backed by Prime Minister Sanae Takaichi. He noted that he expects a shift from Abenomics, the reflationary program launched under former Prime Minister Shinzo Abe.
Bessent plans to meet Ueda on the sidelines of the G20 finance leaders' gathering in Asheville, North Carolina, and praised Ueda as a 'great economist' who is 'under-rated' in his market savvy. He emphasized that Japan has already 'conquered' deflation and shifted to 'Takaichi-nomics', which he sees as more shareholder-friendly with substantial deregulation.
Bessent suggested that the BOJ should not intervene aggressively, but rather sit back and let Abenomics run its course. This stance is a departure from his previous calls for rate hikes to combat inflation and yen declines.