US Treasury Secretary Bessent said on August 31 in a CNBC television interview that the Japanese government and the Bank of Japan will take measures that lead to yen appreciation, increasing pressure on the BOJ to raise interest rates further. Bessent stated, "I have information that the market does not have," and said that while he cannot influence the market's natural equilibrium level, he can send signals. Japanese and US monetary authorities coordinated yen-buying intervention at the end of July, but yen depreciation is progressing again in the foreign exchange market. Bessent is expected to meet with Finance Minister Satsuki Katayama on the sidelines of the G20 finance ministers and central bank governors meeting that opened on the 31st, which would be the first such meeting since the coordinated intervention. He also plans to meet with Bank of Japan Governor Kazuo Ueda.
US Treasury Secretary pressures BOJ to raise rates, likely pushing Japanese government bond yields up.
