Bessent Presses Japan for Policy Action on Yen Weakness
US Treasury Secretary Scott Bessent recently emphasized the importance of Japanese government policy in correcting the yen's weakness. In a CNBC interview, he stated that 'policy changes the market,' not currency intervention.
Bessent referenced Japan's past success with Abenomics under the second Abe administration, which corrected a sharp yen appreciation. He expressed confidence that similar policies will be implemented to address the current issue.
The US Treasury Secretary also highlighted the significance of interest rate differentials between the US and Japan in driving yen depreciation. While he avoided directly predicting further BOJ rate hikes, he hinted at confidence in Governor Kazuo Ueda's stance on normalizing monetary policy.
Bessent reiterated that the US will continue to support the yen, warning that a sharp decline could have far-reaching consequences for global economic stability.