Bessent: Weak Yen, Energy Costs Drove Japan’s Inflation, Virtuous Cycle Ahead
U.S. Treasury Secretary Bessent attributed Japan's recent inflation uptick to a weak yen and elevated energy prices. He expects cooling energy costs and fading yen weakness to reduce inflation and spark a virtuous cycle for the economy and currency.
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U.S. Treasury Secretary Bessent stated that the recent rise in Japanese inflation was largely driven by a weak yen and high energy prices. He emphasized that as energy costs decline and the excess depreciation of the yen fades, inflation pressures should ease.
This combination, he added, would allow Japan and the yen to enter a virtuous cycle, implying a self-reinforcing improvement in economic conditions and currency strength.
Source: First Squawk