Japan PM Takaichi to Retain Katayama as Finance Minister in Reshuffle

Japanese Prime Minister Sanae Takaichi is expected to retain Satsuki Katayama as finance minister in a cabinet reshuffle planned for later this month, according to four government sources familiar with the matter.

The decision underscores a preference for continuity in economic policy as Tokyo navigates delicate negotiations with Washington on currency matters and prepares to implement a proposed consumption tax cut on food items.

Katayama, a former finance ministry bureaucrat, has been central to talks with US Treasury Secretary Scott Bessent. She helped coordinate a rare joint US-Japan yen intervention in late July, reflecting close bilateral cooperation on exchange-rate issues.

"Takaichi values Katayama's role in helping carry out the coordinated intervention and her close relationship with Bessent," one government source said, speaking on condition of anonymity because the matter is not public.

The source added that removing Katayama now could send the wrong signal to markets, especially as Bessent has increased pressure on Japan over its currency policies.

Katayama revealed last month that she and Bessent have held roughly ten discussions, including online meetings, highlighting their working relationship.

Economists have warned that replacing Katayama could unsettle financial markets if a successor were seen as less vigilant about risks from a weak yen or rising government bond yields.