US Treasury Secretary Scott Bessent's recent remarks on Japan's monetary policy have strengthened market expectations that the Bank of Japan (BOJ) could raise interest rates at its September policy meeting, while also prompting debate over the extent of Washington's influence on Japan's monetary decisions, according to Reuters.
The discussion follows last week's rare joint currency market intervention by Japan and the United States to support the yen after its sharp decline. While the coordinated action helped stabilize the Japanese currency, Bessent argued that intervention alone is insufficient and should be backed by tighter monetary policy.
