After visiting Japan, U.S. Treasury Secretary Bessent met with the Governor of the Bank of Japan and suggested a course for addressing yen depreciation and conducting monetary policy. In September, he indicated that Japan should end its reflationary policy, drawing attention to a potential shift in Japan’s policy direction.
On 30 August 2026, U.S. Treasury Secretary Bessent met with Bank of Japan Governor Ueda Kazuo (植田 和男), emphasizing the importance of appropriate monetary policy and communication with markets to stabilize inflation expectations and avoid excessive exchange-rate volatility. The U.S. Treasury was reported to have indicated that it would urge Japan to address the yen’s substantial undervaluation through its market and monetary policies.
At a press conference after the G20 summit concluded on 1 September, Mr. Bessent said, in substance, “Japan achieved significant success with Abenomics. It should bring that to a close and end reflation,” suggesting a shift away from reflationary policy.
In response, Finance Minister Katayama explained that the policy “is not the same as reflationary policy,” indicating that the government intends to maintain its current policy centered on responsible, proactive fiscal policy.
Reflationary policy is centered on monetary easing aimed at overcoming deflation, and debate is proceeding against the backdrop of the policy framework adopted since Abenomics. For tax accountants and certified public accountants, it will be important to assess how developments in interest rates, prices, foreign exchange and the government bond market will affect corporate finances.