Bessent pushes BOJ as he signals end of Abenomics
A September hike is likely already planned, and what the market is expecting is "hawkish communication" from the BOJ.
U.S. Treasury Secretary Scott Bessent has urged the Bank of Japan to raise interest rates, drawing a parallel to director Spike Lee's iconic film "Do the Right Thing." The film, set in a sweltering Brooklyn on a hot summer day, contrasts sharply with Japan's current unusually cool summer. Despite the weather discrepancy, the pressure is mounting on the BOJ.
Bessent is signaling that Japan may have "probably reached the end of Abenomics." Interestingly, this comes after the close coordination between the government and central bank under former Prime Minister Shinzo Abe, particularly in their messaging. Bessent himself, then operating as a hedge fund manager, capitalized on this alignment, making a significant profit by shorting the yen from late 2012 onwards.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
