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U.S.-Japan yen intervention buys time, officials say, as Japan presses growth plan

U.S.-Japan yen intervention buys time, officials say, as Japan presses growth plan

Treasury Secretary Scott Bessent and former Prime Minister Fumio Kishida said coordinated yen-buying can steady markets temporarily, but lasting support depends on policy follow-through, stronger fundamentals and Japan's long-term investment strategy.

Fact Check
The Reuters NHK-based article confirms Bessent's remarks that a less weak yen and weaker energy prices should slow Japan's inflation and his confidence that Governor Ueda will act in the economy's best interest. The PANews report directly confirms Bessent said he wrote 'buy Japanese yen' on his notepad so reporters could see it, matching the claim's title. The July 31 Reuters photo article documents the original notepad note. Multiple sources corroborate the core elements, so the claim is likely true.
Summary

U.S. Treasury Secretary Scott Bessent and former Prime Minister Fumio Kishida said coordinated U.S.-Japan intervention to support the yen can help stabilize markets, but argued it is not a lasting solution without broader policy action and stronger economic fundamentals. After the two governments disclosed Monday that they had intervened in foreign-exchange markets the previous Friday, Bessent said weaker energy prices and a correction in excessive yen weakness should help slow Japan's inflation, while expressing confidence that Bank of Japan Governor Kazuo Ueda will do what is best for the economy. Kishida said the intervention may "buy some time" but promoted a 370 trillion yen ($2.3 trillion) 14-year growth strategy spanning 17 industries as the more durable answer, with public funds intended to catalyze private and overseas investment. Both men stressed the need for policy follow-through beyond market operations, while Kishida said monetary policy must remain the BOJ's decision alone.

Terms & Concepts
  • Currency intervention: Official buying or selling in foreign-exchange markets by governments or central banks to influence a currency's value.
  • Bank of Japan: Japan's central bank, responsible for monetary policy and interest-rate decisions.
  • Abenomics: The economic policy mix pursued under former Prime Minister Shinzo Abe, combining monetary easing, fiscal support and structural reform.