Overview
- U.S. Treasury Secretary Scott Bessent told Finance Minister Satsuki Katayama that sound policy design and clear communication are key to anchoring inflation expectations and preventing excess exchange-rate swings, according to an official readout.
- The Treasury statement noted that Japan’s economic backdrop has materially changed since the launch of Abenomics about 12 years ago.
- Bessent welcomed Katayama’s views on the government’s latest fiscal plans and said he wants to better understand their potential impact.
- The comments briefly lifted the yen, with the meeting coming days before a Bank of Japan decision that markets widely expect will keep rates unchanged.
- Katayama said the discussion did not directly address how the BOJ sets policy and emphasized the central bank’s independence, adding she did not believe the remarks were intended to prod a rate hike.