Finance Minister Satsuki Katayama

Ichiro Suzuki

In October 2025, Sanae Takaichi rose to the helm of the ruling Liberal Democratic Party as the first female president of the party, and then immediately went on to become the first woman to lead the country as Prime Minister. When Takaichi formed her cabinet, there were only two other women other than she, low even by the standard of Japan in recent decades. One of them, however, was Satsuki Katayama who became the first woman to head the powerful Ministry of Finance. The seat of Finance Minister could weigh as much as several relatively insignificant posts combined, which could boost headcount. 

Ms. Katayama entered the mighty Ministry of Finance in 1982 as a trailblazing female bureaucrat. The MOF always attracts the brightest minds from elite universities, especially the University of Tokyo where she earned her degree. She served in various key roles in the MOF, including Director of Legal Affairs, Budget Examiner in Budget Bureau, becoming the first woman to hold that specific post in 2004. She also played an essential role in drafting Japan’s act on securitization of assets. Then in 2005, she ran for a seat in the House of Representatives (the Lower House) election, and was elected. She failed to be re-elected in 2008 but came back the following year as a member of the House of Councillors (the Upper House). 

Ms. Katayama not only is the first woman to head the Ministry of Finance but also can be comparable to capable finance ministers in the ministry’s history. She is apparently far better than her immediate predecessor, who hardly displayed fluency in finance and the financial markets. Her predecessor Shunichi Suzuki had almost zero experience or education in the field of  economics and finance, but held the position by virtue of being a brother-in-law of Taro Aso, who wielded power as finance minister for a decade. Suzuki’s older sister is married to Aso, and Aso must have given lots of advice and influence to Suzuki for managing the ministry. Suzuki often simply read statements prepared by bureaucrats. Finance Minister Suzuki was no match for Secretary of the Treasury Janet Yellen, who has her Ph.D in economics and was Fed chair appointed by President Barack Obama. They had to meet in person every once in a while, and it looked very awakward.

She has never managed a hedge fund but Katayama is quite comfortable with the financial markets and is capable of speaking to Scot Bessent, the Treasury Secretary, with comfort. A concerted intervention by both the U.S. and Japan was engineered by the two finance chiefs who are well versed in the foreign exchange market. While the intervention didn’t deliver a result to speak of, it was Bessent’s statement that drove traders to close their short positions on the yen. It was a blatant intervention in other country’s matter but the Secretary openly stated that the Japan should be embracing more rapid interest rate hikes than what had been delivered so far. He also said that Abenomics was a great success giving the Japanese economy a new lease on life but it had completed its mission and that it was time to fold aggressive economic stimulus or the yen would remain under pressure. These were not the words that PM Takaichi didm’t want to hear because she truly loved dumping one fiscal package to another into the economy to stimulate demand. By now, financial market gurus believe that her penchant for economic stimulus is contributing to a weaker currency, but she doesn’t get it. Finance Minister Katayama obviously shares the view of the Treasury Secretary. She might have even suggested Bessent to say it openly, on behalf of her. Then, the Prime Minister had to pay respect to his statement and how the market reacted to it. Katayama has effectively got the PM under her control as far as this matter is concerned. The PM’s resistance to higher rates is reduced at least, if not eliminated. At a time when the governments of both the U.S. and Japan are not entirely healthy financially, management of government finances and market expectations hinges on the shoulders of the the Treasury Secretary/ Finance Minister. Both the U.S. and Japan have a right person on this critical position, and these two are in good communication. Japan had better appreciate a finance minister who isn’t a figure head. PM Takaichi had picked a right person. 

Another woman in the original Takaichi cabinet is Miki Onoda, who was named Minister for State for Economic Security and Minister for Well-Ordered and Harmonious Coexistence with Foreign Nationals. She is effectively the border czar. Only 42 at the time of appointment, she was chosen to handle a heavy duty job of immigration. Born in Chicago, IL to American father and Japanese mother, Ms. Onoda had U.S. citizenship, which she relinquished later. She used to be a model who competed in a variety of beauty contests including Miss International. Outspoken and even blunt at times, she has cultivated a reputation of staunch conservative and blunt “border hawk”. Fans argue Onoda’s focus is purely on maintaining social harmony, ensuring that foreign nationals with high levels of skills are welcomed. Supporters praise her directness and view her as a refreshing, patriotic leader who isn’t afraid to address public anxieties about demographic changes, rule enforcement and public safety. She is also known for her open love of anime, gaming and tech culture. She commands a big social media following and appeals to young, tech-savvy conservatives. On the flip side of being a star in the LDP’s conservative wing, she is polarizing and doesn’t appeal to liberal minds. That said, Ms. Onoda has made her mark as an up and coming young female politician, not fading into obscurity. 

Past prime ministers were obsessed with a number of female ministers in his cabinet. They made efforts for greater head count. Women were often appointed to relatively insignificant positions. A case in point is the Children and Families Agency, which is the most recently created agency, only in 2023, in order to tackle the issue of low birth rate. Before the arrival of PM Takaichi, the Agency was headed by three people, two of whom were women. Already being the first female PM, Ms.Takaichi didn’t feel pressured to appoint women to her cabinet in order to make it look good cosmetically. Instead of headcount, she chose two capable women to heavyweight posts on the economy, finance and national security, and they delivered. The Children and Families Agency is headed by a man in the Takaichi cabinet.

The recently published global gender equality index ranks Japan 117th out of 145 countries, a notch up from 118th in 2025. The three women in the cabinet didn’t drive Japan to a much higher place. To rise higher it requires a structural shift for greater female representation and even quota in the political world. This takes time. While a big step forward has been made in Japan’s politics, Sanae Takaichi could still be an aberration. In addition, much more has to be done in the business world. Corporate Japan remains an intensely male-dominated world. Of the 225 companies that are components of the Nikkei Index, only two women are found as CEO, in Japan Airlines and Nomura Research Institute. This is absurdly low as opposed to 8-9% for the S&P500 in a country where business is male-dominated, too. The U.S. is ranked 47th and more progress is needed, especially as opposed to Europe. For Japan, getting to where the U.S. stands is still a moon shot. 

About the author: Mr. Suzuki is a retired banker based in Tokyo, Japan