Bessent Downplays Yen Disorder, Expects BOJ to Step Up Rate Hikes
US Treasury Secretary Scott Bessent said recent yen moves are 'pretty well contained', downplaying concerns of disorderly currency movements. The Japanese currency has been sliding, hitting below the 160-per-dollar level on Friday.
Bessent expressed confidence that Bank of Japan Governor Kazuo Ueda will take the right steps to combat yen declines with the backing of Prime Minister Sanae Takaichi. When asked if the BOJ should hike rates more aggressively, Bessent said 'I'm not going to tell them what to do.'
Bessent also referred to Japan's economic policy shift under Takaichi as 'Takaichi-nomics', which he described as more shareholder-friendly with substantial deregulation. He credited Abenomics, launched in 2013 under Prime Minister Shinzo Abe, for breaking Japan out of deflation.