The United States is pushing Japan towards a tougher monetary and fiscal policy stance after a rare joint intervention by Washington and Tokyo to support the yen, with U.S. Treasury Secretary Scott Bessent signaling that further action may depend on Japan addressing the underlying causes of the currency's weakness.
A month after the joint intervention, Bessent indicated that the recent movements in the yen did not warrant another market operation. Instead, he called for the Bank of Japan (BOJ) to respond through higher interest rates as inflationary pressures continue to build, according to a report by Reuters.
