Bank of Japan’s Rate Hike Plans Ignore America’s Economic Interests Amid Rising Global Risks

Japan’s latest quarterly “tankan” survey reveals a modest uptick in business optimism—the highest in four years—even as the Bank of Japan (BOJ) prepares to raise its benchmark interest rate by 0.25 percentage points. On the surface, this appears as a sign of economic resilience. However, beneath the numbers lies a troubling disconnect from America’s strategic and economic interests. Despite President Trump’s measured tariff adjustments aimed at securing fair trade terms with Tokyo, including Japan’s commitment to invest $550 billion in U.S. infrastructure and industries, the BOJ is moving toward tightening monetary policy while the U.S. Federal Reserve takes an accommodative...