Economy

The United States has sent a clear message to Japan: If you want to stop the yen from weakening and fix the trade imbalance between our countries, you must raise interest rates. The U.S. Treasury Department has directly urged the Bank of Japan to act more decisively.

Washington Wants a Stronger Yen and Fairer Trade
This directive was outlined in a fresh report to Congress on the state of global currency markets. In it, the Treasury called on Japan's central bank to respond to its current economic conditions — especially growth and inflation — by implementing further rate hikes.
According to Washington, a stronger yen would help narrow the U.S. trade deficit and create fairer conditions for American exporters. Japan’s weak currency has long been seen as an unfair advantage for its export-driven economy.

U.S. Also Targets Japan’s Giant Pension Funds
In addition to calling for rate hikes, the Treasury also criticized Japan’s massive public pension funds. It said they should not make foreign investments to influence the exchange rate. Instead, they should aim for diversified, risk-adjusted returns — not competitive currency manipulation.
Such direct comments on Japan’s monetary policy are rare from the U.S. But the weak yen has remained a long-term concern for Washington. Ultra-low interest rates in Japan are seen as a key reason for its persistently undervalued currency.

Japan Responds Cautiously as U.S. Monitors More Countries
Japan’s Finance Minister Katsunobu Kato offered a measured response, saying the government does not interfere with decisions made by the central bank. He declined to directly comment on the Treasury report and noted that pension funds manage their portfolios independently.
Interestingly, while the U.S. has not formally labeled any country a “currency manipulator” in 2024, Japan remains on its watchlist — alongside China, South Korea, Germany, Switzerland, and several other nations.

Trump Administration Tightens the Screws
This report marks the first full foreign exchange review under Donald Trump’s renewed presidency. The tone is clear: America will closely monitor any signs of currency-driven trade distortions. Treasury Secretary Scott Bessent emphasized that U.S. tolerance for imbalanced macroeconomic policies has ended.
During his first term, Trump was known for taking a tough stance on trade, especially against countries like China and Japan. While tariffs were his primary tool, currency manipulation is now also in focus. The latest report even added Ireland and Switzerland to the watchlist, expanding it to nine countries.

What Does This Mean?
Under a 2015 U.S. law, any country that meets two out of three criteria related to trade and currency automatically lands on the Treasury's monitoring list. While that designation doesn't carry immediate penalties, it increases the pressure — and the risk of retaliatory action.
📉 For now, Japan’s monetary policy — and the fate of the yen — will remain under a global spotlight.

#usa , #Japan , #Washington , #GlobalMarket , #economy

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The labor market continues to grow despite tariff pressure and the threat of a slowdown.
The US economy added 139,000 new jobs in May, exceeding analysts' forecasts of 125,000, according to data from the Bureau of Labor Statistics released on Friday.
Although the final figure for April was revised down from 175,000 to 147,000, the May statistics confirm that businesses are still hiring despite rising tariffs and a weak economic backdrop.

Elon Musk Warns: “America Headed for Bankruptcy” Over Bloated Spending Bill
Elon Musk has issued a dire warning about the future of the U.S. economy, calling out unchecked government spending and labeling a new Congressional bill a “disgusting abomination.” Venting his frustration on X (formerly Twitter), Musk wrote:
> “I’m sorry, but I just can’t stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.”
The bill in question — the One Big Beautiful Bill Act — is a sweeping tax and spending package backed by President Donald Trump. It recently passed the House and now awaits action in the Senate.
According to the Committee for a Responsible Federal Budget, the bill could add $2.5 trillion to the national deficit over the next decade — or as much as $5.1 trillion including interest, if temporary provisions like the expanded child tax credit and exemptions for tips and overtime become permanent.
In a follow-up post, Musk added:
> “It will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden American citizens with crushingly unsustainable debt. Congress is making America bankrupt.”
Previously head of the Department of Government Efficiency (DOGE), Musk recently stepped down from his role as a special government employee. He thanked President Trump and noted that DOGE’s mission would continue within internal government operations.
His comments sparked a wave of reactions. Senator Rand Paul also weighed in:
> “I agree with Elon. We have both seen the massive waste in government spending and we know another $5 trillion in debt is a huge mistake. We can and must do better.”
White House Press Secretary Karoline Leavitt defended the bill, calling it vital for preserving tax relief and supporting key national priorities.
The debate over fiscal responsibility is heating up — and Musk’s blunt warnings are adding serious fuel to the fire.
#Economy #ElonMusk #GovernmentSpending #USDebtCrisis #Politics $BTC $ETH $BNB #RandPaul