Bessent Questions Japan's Economic Policy in May: Report

New York, Sept. 1 (Jiji Press)--U.S. Treasury Secretary Scott Bessent spent over two hours talking about his frustration with economic policies under the administration of Japanese Prime Minister Sanae Takaichi, during a dinner in May with his Japanese counterpart in Tokyo, The New York Times has reported.

At the event with Japanese Finance Minister Satsuki Katayama on May 11, Bessent questioned her about why some economic advisers around Takaichi were preaching the benefits of a weaker yen, according to the report published in Tuesday's online edition of the U.S. newspaper. The secretary held talks with Katayama and Takaichi separately the following day.

The report said Bessent believed the depreciation of the yen as having gone too far, making inflation in Japan worse and posing a problem also for the administration of U.S. President Donald Trump, who has long argued that Japan's weak yen hurts American exports.

He argued that the situation would improve if the Bank of Japan raised interest rates, pressing Katayama on why the BOJ was not given autonomy, according to the report, which said the account of the dinner was based on interviews with people who had direct knowledge of the meeting.

At a press conference after a two-day meeting through Tuesday of finance ministers and central bank chiefs from the Group of 20 major economies in Asheville, North Carolina, Bessent said that he urged Japan to end its reflationary policy, including its large-scale monetary easing designed to beat deflation.

[Copyright The Jiji Press, Ltd.]