Japan's Takaichi moves to shake 'reflationist' tag as markets and US pressure build

Japan's Prime Minister Sanae Takaichi is working to distance herself from the "reflationist" label, as financial markets and pressure from the United States test her economic stance. "Reflationist" describes a policymaker who favors heavy government spending and easy money to push prices higher and fuel growth. The label has followed Takaichi since her rise, but it now carries risks. Investors worry that loose fiscal and monetary policy could weaken the yen and unsettle Japanese bonds. Washington has also pressed Tokyo to avoid steps that could distort trade and currency markets. Takaichi has not announced a formal change in policy. Instead, she is adjusting her public message, signaling that fiscal discipline and market stability now rank alongside growth. The shift matters well beyond Japan. Its economy is among the world's largest, and its currency and bonds are held by investors across the globe.