Bessent-Takaichi Split Threatens Joint Yen Rescue

On August 12, 2026, reports highlighted a disagreement between US Treasury Secretary Scott Bessent and Japanese Prime Minister Takaichi over the optimal policy path for the Bank of Japan (BOJ), which risks undermining a joint effort to rescue the yen. The split concerns whether the BOJ should rely more on intervention or higher interest rates to support the currency. Analysts suggest that even combined intervention and rate hikes might not be enough to halt the yen's weakening. This discord comes amid a broader context of US-Japan yen intervention, which some view as another defeat for Tokyo.