Deputy Treasury Secretary Irene Brown said Friday at the IMF–World Bank annual
meetings in Bangkok that Japan is no longer in the prolonged deflation of the
past decade-plus and that the yen’s exchange-rate level and Japan’s monetary
policy must adjust accordingly. She said U.S. and Japanese officials are
coordinating closely at all levels to preserve market stability and orderly
functioning and will continue to deepen coordination. Brown warned sharp,
disorderly FX moves could trigger wider spillovers, force position unwinds,
amplify global market volatility and raise borrowing costs in the U.S. and
globally.
