Bessent Tells BOJ Chief to Anchor Inflation Expectations

US Treasury Secretary Scott Bessent urged Bank of Japan Governor Kazuo Ueda to implement 'sound' monetary policy to combat yen weakness, in a meeting at the G20 finance ministers' and central bank governors' meeting in Asheville, North Carolina.

The two officials met on Sunday, September 1. Bessent emphasized the importance of sound formulation and communication of monetary policy to anchor inflation expectations and avoid excess exchange rate volatility.

Bessent also expressed strong support for Japan's 'decisive market and monetary steps' to address yen undervaluation and domestic inflationary pressures. The Treasury Department stated that Bessent noted the role of yen weakness in contributing to Japanese households' cost of living.

The meeting came as a weak yen has pushed up import prices and broader inflation, causing headaches for Japanese policymakers. A recent joint yen-buying intervention by Japan and the US on July 31 failed to put a sustained floor under the sagging currency.