Japan finance minister tells Bessent PM Takaichi is not a reflationist
SPY•Finance Minister Satsuki Katayama told U.S. Treasury Secretary Scott Bessent that Prime Minister Sanae Takaichi is not a reflationist. Katayama said she would maintain close communication with the U.S. Treasury and work with Washington to ensure orderly currency markets.
1. Katayama’s message to Bessent
Katayama said she made clear during a phone call last week that Takaichi is not a reflationist, citing the prime minister’s own repeated statements. She said she would maintain close communication with the U.S. Treasury and work with Washington to ensure orderly currency markets.
2. Debate over fiscal policy
The administration is seeking to dispel speculation that Takaichi favors reflationary policies as she pursues what she calls a “responsible and proactive” fiscal agenda. Economy Minister Minoru Kiuchi said last week that the phase of Abenomics-style reflation policies was over. Bessent had suggested Japan should prioritize fighting inflation over stimulating growth, while markets have viewed Takaichi’s spending plans, a temporary food sales tax cut and ties to Abenomics-associated advisers with caution.
