Bessent Urges Japan to Shift Away from Low-Interest-Rate Policy

U.S. Treasury Secretary Scott Bessent has made remarks that suggest Japan should reconsider its low-interest-rate policy. In an interview with the Nikkei, Bessent praised Japan's economic reforms under Abenomics, saying 'Fifteen years of economic stimulus have created a sustainable and robust economic foundation.' He added that 'The stage of Abenomics is over, and (now) is the time for Takaichinomics.'

Bessent implied that Japan's large-scale monetary easing has led to the weak yen, and hinted at the need to raise interest rates. He expressed confidence in Bank of Japan Governor Kazuo Ueda, saying 'He has an exceptional market sense and I trust him deeply.'

The remarks came after a joint intervention by the U.S. and Japan in the foreign exchange market to stabilize the yen. Bessent stated that this was necessary because many Asian currencies are linked to the yen, and a sharp depreciation could trigger another Asian currency crisis.