Japan fin min Kato says Unsustainable imbalance in some countries behind trade imbalance

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

This article was written by Eamonn Sheridan at www.forexlive.com.