Bessent: Yen Moves Contained, Calls for Robust US-China Talks
US Treasury Secretary Scott Bessent stated that recent Japanese Yen movements are 'pretty well contained', implying they do not consider them disorderly. This assessment comes after a joint Japan-US intervention last month to stabilize the currency.
Bessent also mentioned that Japan has likely reached the end of its Abenomics reflation program and that the country's government is less involved in economic policy under Prime Minister Takaichi, allowing the Bank of Japan (BoJ) Governor Ueda to make decisions on monetary policy.
The US Secretary will meet with BoJ Governor Ueda at the G20 finance leaders' summit, praising him as an underrated market-savvy economist. Bessent emphasized that he will not advise the BoJ on whether to consider back-to-back rate increases, but will instead urge other nations to reassess trade terms with China.
Bessent also stated that the US will hold 'very robust' talks with China to address concerns over powerful models falling into non-state actors' hands. He believes that tougher trade barriers on Chinese goods would encourage Beijing to shift its economy from exports to domestic demand, helping to reduce global imbalances.