Japan finance minister Kato:

  • Told G7 meeting that US tariffs are creating uncertainties
  • Discussed overcapacity with G7
  • Told G7 unsustainable macro-economic imbalance of some countries behind trade imbalance
  • Told G7 each country must take steps to boost domestic demand, cut fiscal deficit
  • Talk with Bessent lasted 30 minutes
  • Met with U.S. Treasury Secretary Bessent today
  • Told Bessent that US tariffs are regrettable
  • Agreed with Bessent that FX rates should be set by markets
  • Reaffirmed excessive volatility in currency moves has adverse impacts on economic and financial stability
  • No talk on FX levels

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Earlier headline on Kato meeting with Bessent:

triggered a slide for the yen, since partially retraced:

usdyen kato bessent update 22 May 2025 2
Source: Forex Live