US Treasury Secretary Scott Bessent’s public pressure on Japan’s monetary policy risks undermining the Bank of Japan’s credibility and increasing global market volatility, former senior BoJ officials warn. As the BoJ prepares to raise rates by 0.25 percentage points to 1.25% next week, Bessent’s remarks—including claims of “asymmetric information” and taunting traders—have raised concerns about external influence on central bank independence. Finance Minister Satsuki Katayama called his “I am the house now” comment “a little scary” in translation.

Former BoJ officials like Takahide Kiuchi of Nomura Research Institute and Ayako Fujita of JPMorgan argue that perceived US pressure erodes trust in the BoJ’s decisions, echoing past interventions that contributed to Japan’s asset bubble. The 10-year Japanese government bond yield has surged above 3%, a 30-year high, while US Treasuries near 5%. Bessent’s recent comments follow a joint US-Japan yen intervention and suggest a potential quid pro quo, though some note his actions could also reduce domestic political interference.

The situation highlights ongoing tensions over monetary sovereignty under the Trump administration’s broader economic and security pressure on Japan.