Bessent Tells Japan to Do What Washington Refuses to Do
Treasury Secretary Scott Bessent is now pressuring Japan to rein in government spending and restore credibility with the bond market as Japanese yields surge. Reuters reports that Bessent confronted Japanese officials over what Washington sees as an inconsistent combination of aggressive fiscal spen
Source: Armstrong Economics
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DW NOTE
Bessent lectures Tokyo on fiscal discipline while Washington runs a $1.9 trillion deficit — 6% of GDP — with Congress showing no appetite for spending restraint. Japan's debt-to-GDP is higher, but at least they pretend to care when bond markets move. The U.S. Treasury's position is: do as we say, not as we've done for three consecutive years.