Bessent Presses BOJ for Sound Monetary Policy Amid Yen Weakness

US Treasury Secretary Scott Bessent met with Bank of Japan Governor Kazuo Ueda over the weekend, calling for sound monetary policy to avoid excess exchange rate volatility.

The meeting took place in Asheville, North Carolina, on the sidelines of a two-day Group of 20 finance ministers and central bank governors meeting. During the discussion, Bessent emphasized the importance of 'sound formulation and communication of monetary policy' to anchor inflation expectations and stabilize exchange rates.

Bessent also expressed his strong support for Japan's recent market and monetary steps to address the yen's persistent weakness, which has contributed to domestic inflationary pressures in Japan. This comes after Bessent repeatedly suggested that the BOJ raise interest rates to tackle the yen's weakness.