Bessent: Japan to Strengthen Yen, US Pressure Continues on Iran
US Treasury Secretary Bessent expressed his belief that Japan will take action to strengthen its currency, the yen. According to CNBC's interview, he stated that 'the Japanese government and the BoJ will do things that will lead to a stronger Yen.'
Bessent also touched on the bond market, saying that he shares views with Fed's Chair Warsh, but emphasized that the US Treasury Secretary cannot change the equilibrium price. He noted that traditionally, interest rates are not raised during supply shocks and highlighted that core inflation has remained restrained.
When discussing Iran, Bessent stated that the US will continue to exert pressure on the country. He described Iran's economic situation as one where they 'are losing economically' and said that their economy doesn't have to collapse, but rather 'just needs to come to its senses.' The Treasury Secretary also reassured that the US will get through the ongoing conflict with Iran.