US Treasury: The Bank of Japan should continue to tighten its policies.

The US Treasury Department said on Thursday that the Bank of Japan should continue to tighten its monetary policy, which would support the "normalization of the weak yen" and bilateral trade rebalancing. The US Treasury Department said in its submission to Congress in its exchange rate report, "The Bank of Japan should continue to tighten its policy to address domestic economic fundamentals including economic growth and inflation, support the normalization of the weakening yen against the dollar, and the structural rebalancing needed for bilateral trade." "The Treasury Department also stressed that government investment tools, such as large public pension funds, should invest overseas for risk-adjusted returns and diversification purposes, rather than targeting exchange rates for competitive purposes," the report said in reference to Japan.