Bessent seeks Fed help in defending yen in unusual call
Cooperation between the Federal Reserve and the Treasury to ensure financial stability isn't unusual, especially during periods of volatility.
U.S. Treasury Secretary Scott Bessent has requested the Federal Reserve to expand a facility that Japan utilizes to bolster its currency, reigniting discussions about the relationship between the two institutions. The Treasury joined forces with Japan to strengthen the yen, and on Sunday, Bessent commended the Fed's Foreign and International Monetary Authorities Repo Facility (FIMA).
This facility enables foreign governments to obtain dollars by using their Treasury holdings as collateral. In a social media post, Bessent referred to the Fed facility as a crucial support for Japan's endeavors and stated, "we would encourage it to be upsized in the coming months."
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
