Bessent Praises BOJ Governor Ueda, Cites Improved Inflation Outlook

US Treasury Secretary Scott Bessent expressed confidence in Bank of Japan Governor Kazuo Ueda's ability to make decisions that benefit Japan's economy.

In an interview with public broadcaster NHK, Bessent stated that he is sure Ueda will 'do what is best' for the country. This comes after a series of comments from Bessent calling for higher Japanese interest rates.

Bessent attributed part of Japan's inflation to the weak yen and energy prices, suggesting that as these factors improve, inflation will slow down, allowing Japan and the yen to 'go into a virtuous cycle'. He also noted that the joint yen-buying intervention with Japan last week was aimed at preventing the currency's weakness from spreading instability across Asian currencies.

Bessent has known Ueda for 15 years and expressed great confidence in his ability, stating that he is 'very market-savvy'.