Bessent meets BOJ's Ueda, calls for sound policy to avoid currency volatility, Treasury says

U.S. Treasury Secretary Scott Bessent met with Bank of Japan Governor Kazuo Ueda during the G20 finance ministers' and central bank governors' meeting in Asheville, North Carolina. In their discussion, Bessent called for sound monetary policy to stabilize inflation expectations and prevent excessive currency volatility, according to the Treasury Department.

He also expressed support for Japan's decisive market and monetary measures to tackle the significant undervaluation of the yen, which has contributed to domestic inflationary pressures in the country. Bessent's remarks align with his recent advocacy for the Bank of Japan to raise interest rates, potentially providing a rationale for Governor Ueda to request a rate increase at the bank's policy meeting on September 17-18.