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Japan Ready to Intervene as Yen Declines Amid Inflation Woes

1/25/2026

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Summary

Story summary

Japanese Prime Minister Sanae Takaichi said January 25, 2026, the government is prepared to intervene in foreign-exchange markets to counter the yen's decline.
The yen reversed after the Federal Reserve's rate checks, fueling speculation of joint US-Japan intervention.
The debate centers on bond yields and inflation, with a February 8, 2026 election and a plan to suspend the 8% food tax for two years to ease costs amid yen weakness.

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Story summary

Japanese Prime Minister Sanae Takaichi said January 25, 2026, the government is prepared to intervene in foreign-exchange markets to counter the yen's decline.
The yen reversed after the Federal Reserve's rate checks, fueling speculation of joint US-Japan intervention.
The debate centers on bond yields and inflation, with a February 8, 2026 election and a plan to suspend the 8% food tax for two years to ease costs amid yen weakness.