US Urges Japan to Raise Interest Rates to Strengthen Yen and Close Trade Gap

The US Treasury Department has issued a direct call for the Bank of Japan (BOJ) to increase interest rates, arguing it’s crucial to address the weak Japanese yen and reduce trade imbalances. The department released its latest foreign exchange report to Congress on Thursday, urging the BOJ to prioritize actions based on internal economic indicators like growth and inflation when determining rate hikes. This approach aims to bolster a stronger yen, which would decrease the US trade deficit and create a more level playing field for American businesses.