As the Bank of Japan prepares for a Friday rate decision, architects of Abenomics are reversing course, now warning against the very low-rate policies they created. Inflation has exceeded the central bank's 2 percent target for most of the past four years, and the yen has fallen to multidecade lows. Koichi Hamada, a key Abenomics adviser, now recommends monetary constraint, saying "the situation is completely different now." The Bank of Japan is expected to raise rates from 1 percent to 1.25 percent, but Hamada and others urge faster action.

Scott Bessent, who once profited from Abenomics by shorting the yen, has pressed Japan to halt reflationary policies. Haruhiko Kuroda, the former central bank governor who kept rates at or below zero for a decade, has also warned about inflation. Prime Minister Sanae Takaichi, however, continues embracing Abenomics, pursuing record fiscal spending that has pushed 10-year government bond yields to three-decade highs and raised debt concerns.