U.S. Treasury Secretary Scott Bessent criticized the Bank of Japan’s monetary policy stance, stating the central bank is “behind the curve” on inflation and needs to raise interest rates.
In a Bloomberg TV interview, Bessent said Japan has an inflation problem with core inflation above 2% for over three years, and predicted the BOJ will be hiking rates soon. His comments contrast sharply with BOJ Governor Kazuo Ueda’s position that the bank isn’t moving too slowly.
The remarks contributed to the yen strengthening against the dollar, with USD/JPY falling to three-week lows.