NEW YORK, USA - The U.S. government officially endorsed the quantitative easing policy stance of the Japanese monetary authorities. According to the online edition of the Nihon Keizai Shimbun and other Japanese sources on February 12, Lael Brainard, the U.S. Under Secretary of the Treasury for International Affairs, said in a press conference on the 11th, "We are in support of the Japanese government's effort to get out of the deflation through 'Abenomics'."

 

Following the Brainard's remarks, the yen value against the dollar has plunged. In the New York forex market on the 11th, the yen was once traded at as low as 94.46 yens per dollar. This is the lowest level since May 5, 2010.

 

The Treasury Under Secretary urged the Japanese government to come up with a growth plan that accompanies a structural reform. She also reiterated the principle that currency rates must be determined by the market mechanism, which was what the G7 made very clear.