US Treasury Secretary Bessent (ベセント) made pointed remarks on Japan's fiscal management in a Reuters interview, fueling speculation that they could affect the Bank of Japan's rate-hike decision and the fiscal 2027 budget process.
In a Reuters interview, US Treasury Secretary Bessent (ベセント) said Japan should "take a step back, enjoy the success of Abenomics and let that momentum carry it forward" in managing its fiscal policy. While praising the large-scale monetary easing and fiscal stimulus of the past, he indicated that Japan should now avoid continuing along an expansionary fiscal path. The remarks have raised concern within the Japanese government, while attention has focused on the administration's decisions as next year's budget process gathers pace.
According to several government officials, the United States ultimately made its concerns over expansionary fiscal policy public, even as it worried that pressuring the government to withdraw its signature policy could undermine its political base. Some observers believe US concerns over Takaichi's (高市) fiscal policy could also influence opposition parties and advocates of fiscal discipline.