Group 1 - The Japanese Finance Minister, Shunichi Suzuki, expressed uncertainty about achieving a primary budget surplus by 2025, indicating a complex fiscal situation [1] - Japan's government is caught between the commitment to "responsible active fiscal policy" and a national debt that has reached 260% of GDP, with the Finance Minister emphasizing the need to gradually reduce the net debt-to-GDP ratio without providing a clear path [3] - The core CPI in Japan has risen for 49 consecutive months, with a 2.9% increase in September, while social security expenditures are increasing by approximately 1 trillion yen annually due to an aging population [3] Group 2 - The U.S. Treasury Secretary's praise for Japan's expansionary fiscal policy complicates the situation, as it contrasts with the Finance Minister's call for stable exchange rates amid a depreciating yen [5] - The Bank of Japan's decision to maintain a 0.5% benchmark interest rate highlights the structural challenges in the Japanese economy, where fiscal policy requires coordination with monetary policy to avoid significant exchange rate fluctuations [5] - The fragile nature of the ruling coalition, described as a "vase held together with tape," makes reform efforts difficult, with predictions suggesting a potential interest rate hike in January 2026, or earlier if the yen continues to depreciate [7]