US Treasury Secretary Bessent said on the 1st, at a press conference following the G20 Finance Ministers and Central Bank Governors meeting, that he had told Japanese officials that the reflation policy under Abenomics had been a great success and that it should now be ended. He also noted that with Japan's long-term interest rates reaching 3% and fiscal consolidation drawing attention, it is now the era of 'Takaichi-nomics' and that Japan should enjoy the fruits of 13 years of reflation policy. Furthermore, he emphasized that since reflation has succeeded, it is necessary to consider its consequences.
Bessent recommends ending Japan's reflation policy, which could lead to tighter monetary conditions and a stronger yen.
