U.S. Treasury Secretary BESSENT publicly pressured the Bank of Japan to tighten
policy, saying he possesses “asymmetric information” about the BOJ’s next move
and calling himself the “bookie.” Speaking at a Texas university, the former
hedge-fund trader said he broadly knows what “Japanese policymakers” plan but
gave no specifics. Markets are pricing a 25bp BOJ hike next week; the comments
increase pressure on Governor Ueda to signal a sufficiently hawkish path or risk
volatility and erasure of recent yen gains. Last week BESSENT urged Japanese
officials to “do the right thing” on rates. The remarks underscore unusually
direct U.S. involvement in Japanese policy; Japan is the largest foreign holder
of U.S. Treasuries. In late July he coordinated a joint intervention with
Japan’s finance minister—the first since 1998—to support the yen.
