Bessent Downplays Yen Moves, Expects BOJ Rate Hikes
US Treasury Secretary Scott Bessent downplayed recent yen moves on August 30, calling them 'pretty well contained' and not disorderly. This assessment comes after the Japanese currency slid below the 160-per-dollar threshold on August 28, sparking concerns of a potential intervention from the US and Japan.
Bessent expressed confidence in Bank of Japan Governor Kazuo Ueda's ability to make the right monetary policy decisions with the backing of Prime Minister Sanae Takaichi. When asked whether the BOJ should consider consecutive interest rate hikes to combat yen declines, Bessent said 'I'm not going to tell them what to do.'
However, he did suggest that Abenomics, Japan's reflationary economic policy launched in 2013 under Prime Minister Shinzo Abe, may have reached its end. Bessent plans to meet Ueda on the sidelines of the G20 finance leaders' gathering in Asheville, North Carolina.