U.S. Treasury Secretary Scott Bessent weighed in on Japan’s monetary and fiscal policies, including the Bank of Japan’s independence. Attention is focused on developments against a backdrop of rising long-term interest rates and a weakening yen.
Following the close of the G20 meeting in Asheville, U.S. Treasury Secretary Scott Bessent publicly weighed in on Japan’s fiscal and monetary policies. Reports said he appeared concerned that the rise in Japan’s long-term interest rates and the yen’s depreciation could spill over into the United States.
The New York Times reported that, during a dinner with Finance Minister Katayama Satsuki (片山さつき) during a visit to Japan in May this year, Bessent expressed dissatisfaction with the Takaichi administration’s economic policies. At the same time, Japan was said to be calling for the BOJ to maintain low interest rates, prompting criticism that this contradicted Bessent’s remarks.
The Japanese side maintained a cautious stance. Katayama explained the substance of the Japan-U.S. finance ministers’ meeting, saying that the two sides had found common ground on the Takaichi administration’s policy of balancing fiscal implementation and sustainability. The difference in their views was brought into sharp relief.
Depending on developments in the foreign exchange and bond markets, Bessent may continue his comments ahead of the next G20 meeting in October.