"The Japanese economy is not performing as well as it should, or will eventually," Snow said. "I don't think the answer lies in monetary policy, but in a set of policies that remove some rigidities in the economy," he said.
The dollar's gains against the yen also came amid speculation that Japan will sell its currency for a fourth month to stem a rally that has slowed the country's exports. The yen has risen 9 percent against the dollar in the past 12 months, making the country's products more expensive in the US.
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