In Japan, Finance Minister Satsuki Katayama has come under pressure over the need to strengthen the yen, while balancing the position of Prime Minister Sanae Takaichi and Washington’s demands. This was reported by The Japan Times.
Meeting in Tokyo
On one Monday evening in May, Katayama had dinner with U.S. Treasury Secretary Scott Bessent at a restaurant located in a 400-year-old garden in central Tokyo. The following day, Bessent was due to meet with Japanese Prime Minister Sanae Takaichi.
During the two-hour dinner, Bessent expressed dissatisfaction to Katayama with the Japanese prime minister’s economic course. According to the publication, Bessent had closely followed the Japanese economy while working as a hedge fund manager.
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The yen exchange rate
According to the publication, Takaichi increased government spending while relying on the Bank of Japan to maintain low interest rates. According to The Japan Times, this course contributed to capital outflows from Tokyo and the weakening of the Japanese currency to its lowest level in four decades.
Katayama must respond to the yen’s weakness while coordinating this with the Japanese head of government’s economic approach and the position of the U.S. side.
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