Bessent Says BOJ Is Falling Behind the Curve, Expects Hike

In a rare public statement, US Treasury Secretary Scott Bessent criticized the Bank of Japan's (BOJ) monetary policy, stating that the central bank is "falling behind the curve" in addressing the country's inflation. Bessent's comments suggest that the BOJ should take more aggressive action to combat rising prices, potentially hinting at the need for interest rate hikes. The Treasury Secretary's remarks highlight the growing concerns over Japan's economic situation, as the country continues to grapple with stubbornly low inflation despite the BOJ's efforts to stimulate the economy. Bessent's intervention in the policy decisions of a foreign central bank is seen as an unusual move, underscoring the importance the US government places on Japan's economic stability and its potential impact on the global economy. The article does not provide further details on Bessent's specific recommendations or the BOJ's response to the criticism. However, the statement is likely to add pressure on the Japanese central bank to reevaluate its monetary policy and take more decisive steps to address the country's inflationary challenges.