Bessent asked to justify yen intervention in letter from top Democrat
The request extends the senior Democrat's pattern of scrutinizing the Trump administration's foreign-exchange policies.
Senator Elizabeth Warren has requested Treasury Secretary Scott Bessent to provide a detailed justification for the U.S. administration's intervention in the yen, following a joint U.S.-Japan operation to support the currency. The request comes in a letter dated August 13, in which Warren criticized the administration for lacking transparency about the use of taxpayer funds in the intervention.
Bessent confirmed media reports of the first U.S.-Japan joint intervention since 1998 but has not disclosed the exact amount used, stating that the operation involved euros from the Treasury's Exchange Stabilization Fund (ESF). Warren, the top Democrat on the Senate Banking Committee, has asked for a legal analysis of the Treasury's decision to use the ESF, a response by August 28, and information on the expected cost to U.S. taxpayers and the scale of potential financial support for Japan.
The Treasury has not yet responded to the request. Warren previously scrutinized the administration's intervention in Argentina's peso market, describing it as a "politically driven, taxpayer-backed bailout." She also inquired whether the Treasury consulted with the European Central Bank regarding the use of euros in the yen intervention, noting that the ECB was reportedly only informed after the fact.
Warren further questioned Bessent on the potential impact of financial market turmoil in Japan on U.S. jobs, wages, and financial stability, given Japan's status as the largest foreign holder of U.S. Treasuries.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
