Former Japanese Ministry of Finance official Hirofumi Watanabe: Easing fiscal policy may cause market turbulence again.

Former Japanese Ministry of Finance official Hirofumi Watanabe stated that Japan will continue to face market volatility caused by fiscal policy, and the risk of further tax cuts could trigger a wave of government bond and yen selling similar to the "Treas shock" in the UK. Watanabe said that if the ruling party, the Liberal Democratic Party, feels disadvantaged in the election campaign, they may be inclined to expand consumption tax exemptions to solidify voter support, and the market remains highly sensitive to this risk. He said, "Currently, we are barely holding the situation together, but we are already on a critical edge." Watanabe was in charge of Japan's exchange rate policy from 2004 to 2007 and was responsible for coordinating economic policies with other countries.