Bessent-Takaichi split on BOJ risks undermining joint yen rescue
Even as the U.S. and Japan have shown rare unity in moving to strengthen the yen, a fundamental tension between U.S. Treasury Secretary Scott Bessent and Prime Minister Sanae Takaichi over the Bank of Japan risks undermining their efforts.
For the past year, Bessent has signaled he believes monetary tightening is crucial to address the weakness in Japan’s currency. Takaichi, by contrast, has long been wary of taking interest rates too high, too fast, and snuffing out an economic rebound that’s excited investors the world over.
While the BOJ has hiked rates twice since Takaichi took power last October, its benchmark rate remains low, at 1%.
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