Bessent Urges Japan to Hike Rates for Fiscal Sustainability
U.S. Treasury Secretary Scott Bessent urged Japanese officials to demonstrate a clear path towards fiscal sustainability and higher interest rates, NHK reported on Tuesday.
Bessent held separate meetings with Bank of Japan Governor Kazuo Ueda and Japanese Finance Minister Satsuki Katayama on the sidelines of the G20 finance ministers and central bank governors' meeting in Asheville, North Carolina.
A Treasury under secretary told NHK that Bessent stressed the importance of clearly showing markets the path towards fiscal sustainability and interest-rate increases as Japan's next policy step.
The comments come as the yen remains under pressure near the closely watched 160-per-dollar level, while expectations for a September BOJ rate hike have increased.