Bessent Presses Japan for Fiscal Discipline Amid Yen Stabilization Efforts
US Treasury Secretary Scott Bessent pressed Japanese Finance Minister Satsuki Katayama for fiscal discipline during talks in June, sources revealed. The interaction was part of a larger effort to stabilize the yen's value.
Bessent had been privately urging Japan to restrain its large fiscal spending and raise interest rates, according to three people familiar with the situation. His concerns were centered around the potential risk that a sell-off in Japanese bonds could spill over into US debt.
The June 22 call between Bessent and Katayama helped set the stage for a joint intervention by Washington and Tokyo in late July. The talks demonstrate how Washington is using its leverage over currency and Treasury markets to extract policy concessions from key allies.