Scott Bessent is using moves from his hedge fund days to prop up Japan’s yen—and America’s $40 trillion national debt
The man who once shorted currencies is now propping them up. “He takes risks that other Treasury Secretaries over the past two generations wouldn't.”
Scott Bessent, a former hedge fund manager, is using his expertise in currency trading to intervene in Japan's weak yen. His move comes as the U.S. government seeks to support the currency and help alleviate America's $40 trillion national debt. Bessent's connection to Japan, dating back to his early days as a trader, gives him credibility in making such a decision.
He helped short the British pound and make a fortune in 1997, a move that "broke the Bank of England." Now, as Treasury Secretary, he has bought yen with euros, a move that surprised the market and drew mixed reactions from economists. Bessent insists that he sees Japan's economic fundamentals as positive, and his decision aligns with both U.S. and Japanese interests.
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Also reported by 2 other outlets
- Bessent brings hedge fund mindset to US-Japan yen intervention hedgeweek.com
- Scott Bessent draws on hedge fund instincts to help rescue yen japantimes.co.jp
