The U.S. government has stepped up its demands regarding Japan's economic policy, and the U.S. Treasury secretary held an unusual meeting with the BOJ governor. The two countries reportedly have sharply different views on policy.
The United States is wary that Japan's rising interest rates, which have reached levels not seen in 30 years, could spill over into the U.S. and is reportedly urging Japan to review its reflation policy and the Bank of Japan to raise rates.
Finance Minister Katayama Satsuki (片山さつき) and BOJ Governor Ueda Kazuo (植田和男), who attended the G20 meeting of finance ministers and central bank governors, each met with U.S. Treasury Secretary Scott Bessent and reportedly discussed fiscal and monetary policy.
The article points to both the U.S. request and Japan's response, and reports that the U.S. communicated a policy stance that included ending Japan's reflation policy.
The meetings have highlighted differing views over the discipline of Japan's fiscal management and the BOJ's stance on raising interest rates, according to some observers.