# market intervention

Takaichi’s Electoral Mandate Fuels Fiscal Boldness — and Fresh Downward Pressure on the Yen

Prime Minister Sanae Takaichi’s governing coalition won a decisive lower-house majority, clearing the path for expansionary fiscal measures such as cuts to the food consumption tax and a new sovereign wealth fund. Markets have swiftly priced in a higher probability of yen weakness and a Japanese equity rally, while analysts warn that persistent fiscal loosening could exacerbate sovereign-financing pressures and elevate the risk of market intervention if the currency weakens beyond key thresholds.