Key Facts
• August 26, 2025: Finance Minister Kato expressed concerns over speculative currency trends.
• Emphasized importance of exchange rates reflecting fundamentals for stability.
• U.S. President Trump dismissed Federal Reserve Board member Cook on August 25, 2025.
• Recent long-term interest rate increases reflect market views on Japan’s fiscal management.
• Government aware of concerns over fiscal policies and committed to proper bond management.
• Asahi Shimbun reported potential new tax for infrastructure maintenance; government denies specific plans.
Summary
Japanese Finance Minister Katsunobu Kato reiterated the importance of stable exchange rates reflecting economic fundamentals during a press conference on August 26, 2025. He expressed ongoing concerns about speculative movements in the currency market. The remarks followed U.S. President Donald Trump’s dismissal of Federal Reserve Board member Cook, which impacted exchange rates. Kato also addressed rising long-term interest rates, attributing them to market perceptions of Japan’s fiscal management and economic conditions. He assured that the government would implement appropriate bond management policies. Regarding a report by Asahi Shimbun on a potential new tax for infrastructure maintenance, Kato clarified that the government has no specific plans for securing such funding.
