World Economy

Bessent Signals Support for BOJ Rate Increases in Tokyo Meetings

U.S. Treasury Secretary Scott Bessent indicated backing for higher Japanese interest rates following discussions with Bank of Japan Governor Kazuo Ueda. This reflects Washington's view that monetary tightening is needed to strengthen the yen. The endorsement highlights broader tensions over currency valuations across global markets, where central banks face competing pressures. Israel's central bank has cut rates three consecutive times as exporters pushed back against shekel appreciation. Meanwhile, Federal Reserve officials remain divided on the inflation outlook. Governor Michael Barr cautioned the Fed must prepare to raise rates if price pressures persist above target levels. Fed Chair Kevin Warsh's recent hawkish rhetoric has reinforced expectations for a tighter policy stance, potentially creating friction with Treasury priorities focused on currency stability and export competitiveness.