Bessent Downplays Yen Weakness, Pledges Robust Talks with China
US Treasury Secretary Scott Bessent stated that recent Japanese Yen moves are 'pretty well contained', implying they don't meet the criteria for a disorderly move. This assessment suggests that the current weakness in the yen is not seen as a cause for concern, unlike last month's rare joint Japan-US intervention.
Bessent also emphasized that Washington will hold 'very robust' talks with China, focusing on preventing powerful models from falling into non-state actors' hands.
In his comments on Japan's economic policies, Bessent noted that the country likely reached the end of its Abenomics reflation program. He expressed confidence in Bank of Japan Governor Kazuo Ueda's ability to act appropriately on monetary policy with the support of Japanese Prime Minister Fumio Takaichi.
Bessent praised Ueda as an underrated market-savvy economist and emphasized that the government should 'sit back and enjoy' the success of Abenomics, allowing it to run its course. He declined to comment on whether the BoJ should consider back-to-back rate increases.