US Treasury Secretary Bessent backs Yen support, urges BOJ clarity

The US Treasury Secretary Scott Bessent said that he “emphasized the importance of sound formulation and communication of monetary policy to anchor inflation expectations, in a meeting with the Bank of Japan Governor, Kazuo Ueda.

Bessent added that the support Japan’s steps to address the undervaluation of the Japanese Yen.

Key highlights:

I EMPHASIZED THE IMPORTANCE OF SOUND FORMULATION AND COMMUNICATION OF MONETARY POLICY TO ANCHOR INFLATION EXPECTATIONS IN MEETING WITH THE BANK OF JAPAN GOVERNOR.

I EXPRESSED STRONG SUPPORT FOR JAPAN'S DECISIVE MARKET AND MONETARY STEPS TO ADDRESS THE SUBSTANTIAL UNDERVALUATION OF THE YEN.

I TOLD THE BOJ GOVERNOR TO AVOID EXCESS FX RATE VOLATILITY.