Bessent

U.S. Treasury Secretary Scott Bessent stated that the Japanese yen will stabilize at a fair and sustainable level if the Bank of Japan (BoJ) continues to follow a consistent and responsible monetary policy.

Bessent made the remarks during a discussion with reporters, shortly after the yen once again weakened against the U.S. dollar.

Yen Hits Eight-Month Low
On October 10, the yen fell to 153.27 per dollar, its weakest level in eight months. Analysts attribute this decline to low market expectations that the BoJ will raise interest rates anytime soon.
Bessent declined to comment on the yen’s specific level or the upcoming decision by BoJ Governor Kazuo Ueda, scheduled for October 30, but expressed confidence that Ueda is “highly capable” and understands the delicate balance between inflation and economic growth.

BoJ Struggles to Balance Inflation and Growth
After more than a decade of ultra-loose policy, the BoJ has kept its main interest rate at 0.5% since January. The policy was meant to help Japan recover from years of weak inflation and sluggish growth.

Today, however, the situation has flipped — inflation has remained above 2% for over three years, while real wages are stagnating.
Governor Ueda has said the bank will proceed cautiously, seeking to understand the effects of U.S. tariffs, slower global trade, and domestic consumption changes on Japan’s economy before moving again.

He warned that raising rates too quickly could endanger the fragile recovery Japan has been nurturing since the pandemic.

Political Uncertainty Limits Central Bank’s Options
In addition to economic challenges, the BoJ now faces political uncertainty. The ruling Liberal Democratic Party (LDP) is undergoing a leadership transition, with Sanae Takaichi preparing to become Japan’s next prime minister. Her upcoming appointment has stirred unease among investors who value policy stability and predictability.
Complicating matters further, the LDP’s long-time coalition partner, Komeito, has left the alliance, delaying major economic policy decisions.

Until Japan’s political situation stabilizes, the odds of a rate hike remain low — traders currently estimate only a 15% chance, down from 70% at the end of September.
At present, the yen is trading around 150.60 per dollar, a level that increases import costs for both Japanese consumers and businesses.

Government Monitors Markets and Considers Intervention
Japan’s Finance Minister Katsunobu Kato said the government has observed “rapid moves toward yen weakness” and is ready to act if volatility gets out of control, though he did not specify what measures might be taken.
Former BoJ executive Kazuo Momma added that a rate hike would become increasingly likely if the yen fell below 155 per dollar, warning that such weakness would push up import prices even further and strain households already battling higher living costs.

Bessent: Stability Requires Patience and Trust
Secretary Bessent emphasized that lasting currency stability requires patience, consistency, and clear communication.

“If the Bank of Japan stays on its chosen path, the yen will naturally find its equilibrium,” he said.
According to analysts, the yen will remain highly sensitive to political developments and BoJ policy signals in the coming weeks. True stabilization will depend on how quickly Japan can restore confidence in both its economic and political direction.


#Japan , #Inflation , #economy , #globaleconomy , #Bessent

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Hi friends
August 5, 2025 | Washington, D.C.
In a significant turn of events, former President Donald $TRUMP has officially removed Treasury Secretary Scott Bessent from consideration to replace Jerome Powell as Federal Reserve Chair. The reason? Bessent himself reportedly declined the offer, choosing instead to remain in his current role at the Treasury.
> “I love Scott, but he wants to stay where he is,” Trump told CNBC. “I’ll take him off, because I asked him just last night, ‘Is this something you want?’ [He said] ‘Nope, I want to stay where I am.’”
Trump’s updated shortlist now features former Federal Reserve Governor Kevin Warsh, White House economist Kevin Hassett, and two yet-to-be-named candidates. This shake-up comes as Trump continues to lambast current Fed Chair Jerome Powell, criticizing him for dragging his feet on implementing interest rate cuts. The former president has gone so far as to call Powell “a numbskull” and “a complete moron,” placing the blame for recent economic instability squarely on the central bank's leadership.
A Divided Fed in Uncertain Times
The Federal Reserve recently held rates steady amid global trade uncertainty and fragile economic indicators. But not without dissent: Fed Governor Christopher Waller and Vice Chair Michelle Bowman both pushed for a quarter-point cut, exposing deep internal division.
Further complicating matters, Fed Governor Adriana Kugler resigned just last week, leaving another vacancy on the board. Trump confirmed he will appoint a temporary replacement within days—an unusual four-month term, which many see as a possible audition for the permanent chair role once Powell’s term ends in 2026.
Bessent’s Influence Isn’t Over
Though Bessent has stepped away from the Fed chair spotlight, he remains a major player in Trump’s economic circle. He’s now leading high-level trade negotiations, including recent U.S.-China talks held in Sweden, with a critical August 12 deadline looming for tariff decisions. His presence at the negotiating table underlines his continuing influence in shaping economic policy—especially as it intersects with the 2025 campaign cycle.
Kevin Hassett, another name floated for Fed leadership, confirmed Bessent is still heavily involved in vetting potential candidates, suggesting that even from behind the curtain, Bessent's voice will shape who leads the Fed next.

Key Takeaways:
Scott Bessent is out of the running for Fed Chair.
Kevin Warsh and Kevin Hassett are top contenders.
$TRUMP will appoint a four-month interim Fed Governor—possibly as a test run.
Internal Fed tensions emerge over stalled rate cuts.
U.S.-China trade negotiations remain tense ahead of August 12 deadline.
The economic and political stakes are growing—and the markets are watching closely.
#FedWatch #CryptoNews #TrumpEconomy #Bessent #JeromePowell
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