Bessent Wields Leverage on Japan as Yen Stabilizes

Japanese finance minister Satsuki Katayama called Scott Bessent, the U.S. Treasury Secretary, in June for help to support the cratering yen.

Bessent's response was familiar: if Tokyo wanted assistance, it had to get its fiscal house in order.

For months, Bessent had told Katayama and other officials privately that Japan should rein in its massive fiscal spending and raise interest rates to combat inflation.

The Japanese government worried that a weaker yen would hurt Prime Minister Sanae Takaichi with voters, but Bessent was more concerned about a sell-off in the yen spilling over to U.S. debt.