Bessent attacks Warren over yen intervention query, offers ‘Foreign Exchange for Dummies’ lesson
Treasury has not disclosed how much yen it bought, the execution rate or the current value of the position, despite Warren’s requests for details.
TL;DR
- Treasury Secretary Scott Bessent criticized Senator Elizabeth Warren's understanding of foreign exchange markets regarding a U.S. intervention in the Japanese yen.
- Warren questioned the intervention and highlighted recent policy setbacks and economic struggles.
- Bessent clarified that no credit was extended to Japan and Japan owes Treasury nothing.
- Despite Warren's later correct description of the intervention, Bessent's response omitted details on the amount of yen bought, execution rate, and current position value.
- The intervention was the first coordinated U.S.-Japan effort to strengthen the yen since 1998.
- Japan spent approximately $96.5 billion supporting its currency between July 30 and August 26.