US Treasury Secretary Bessent held talks with BOJ Governor Ueda Kazuo (植田和男) and voiced support for Japan taking resolute market and monetary policy measures to correct excessive yen depreciation. With the BOJ’s next meeting approaching, he was seen as intensifying pressure to raise rates by conveying the message directly.
US Treasury Secretary Bessent held talks with BOJ Governor Ueda Kazuo (植田和男) in Asheville on 30 August. The US Treasury had announced the talks on 1 August, and they were held ahead of the G20 Finance Ministers and Central Bank Governors Meeting.
During the talks, Bessent said that appropriately formulating and communicating monetary policy was important to avoid excessive exchange-rate volatility, and pointed out that yen depreciation was one factor behind upward pressure on prices in Japan. The BOJ’s monetary policy meeting was scheduled for the 17th and 18th.
The remarks were interpreted as intended to emphasize to the Japanese side the need to take policy measures to correct excessive yen depreciation, while the US side was seen as placing importance on market stability and appropriate policy management.
By conveying the message directly to the BOJ governor, the US side demonstrated its stance of intensifying pressure for a rate hike.