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Bessent backs ‘firm monetary policy’ on weak yen, adding pressure for rate hike
🇰🇷 South Korea /Economy & Trade

Bessent backs ‘firm monetary policy’ on weak yen, adding pressure for rate hike

From Dong-A Ilbo · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

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  • U.S. Treasury Secretary Scott Bessent told Bank of Japan Governor Kazuo Ueda that he supports firm market and monetary policy measures to address the yen’s renewed weakness.
  • Bessent said the weak yen was contributing to inflationary pressure in Japan and stressed the need for sound monetary policy and communication.
  • His comments were interpreted as U.S. pressure on Japan to consider a benchmark interest-rate increase while maintaining fiscal sustainability.

Scott Bessent has voiced support for Japan taking “firm market and monetary policy measures” as the yen has weakened again, a message interpreted as pressure on Tokyo to raise interest rates.

I support firm market and monetary policy measures.

— Scott BessentBessent expressed support for Japan’s response to the yen’s renewed weakness.

The U.S. Treasury secretary made the comments during a meeting with Bank of Japan Governor Kazuo Ueda on April 30, held alongside a Group of 20 finance ministers’ meeting in Asheville, North Carolina. The U.S. Treasury disclosed the remarks in a statement on May 1.

Bessent said the yen’s weakness was contributing to inflationary pressure in Japan. He stressed that Japan needed to establish and communicate sound monetary policy to stabilize inflation expectations and prevent excessive exchange-rate volatility.

The yen’s weakness is contributing to inflationary pressure in Japan.

— Scott BessentHe cited domestic inflation as a reason for sound monetary policy.

During the G20 meetings, Bessent also met Japanese Finance Minister Satsuki Katayama. The two discussed the importance of close coordination on the macroeconomic priorities of Japan and the United States, while Japan sought to secure fiscal sustainability and move toward higher interest rates.

It is important to formulate and communicate sound monetary policy to stabilize inflation expectations and prevent excessive exchange-rate volatility.

— Scott BessentHe described the policy and communication needed to address inflation expectations and currency volatility.
About this summary

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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