Japan finance minister Kato:
- Told G7 meeting that US tariffs are creating uncertainties
- Discussed overcapacity with G7
- Told G7 unsustainable macro-economic imbalance of some countries behind trade imbalance
- Told G7 each country must take steps to boost domestic demand, cut fiscal deficit
- Talk with Bessent lasted 30 minutes
- Met with U.S. Treasury Secretary Bessent today
- Told Bessent that US tariffs are regrettable
- Agreed with Bessent that FX rates should be set by markets
- Reaffirmed excessive volatility in currency moves has adverse impacts on economic and financial stability
- No talk on FX levels
- Tariffs are not appropriate means to correct macroeconomic imbalances that are behind trade imbalances
- Did not directly discuss Japan’s US Treasury holdings in meeting with Bessent
- Leave monetary policy to BOJ
- Monetary policy falls under jurisdiction of BOJ, when asked whether he discussed BoJ policy with Bessent
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Earlier headline on Kato meeting with Bessent:
triggered a slide for the yen, since partially retraced:
This article was written by Eamonn Sheridan at www.forexlive.com.
