{
  "id": 327652,
  "title": "Bessent's defense of the Yen is a risky innovation",
  "url": "https://urgent.news/2026/08/09/bessents-defense-of-the-yen-is-a-risky-innovation",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-09T00:22:04.000Z",
  "source": {
    "name": "The Korea Times",
    "slug": "the-korea-times",
    "url": "https://www.koreatimes.co.kr/opinion/20260809/bessents-defense-of-the-yen-is-a-risky-innovation"
  },
  "original_language": "en",
  "account": "Treasury Secretary Scott Bessent's decision to join Japan in supporting the yen marks the first joint intervention of its kind in decades, surprising investors. While there is a case for such cooperation, as the U.S. and Japan could both benefit for a time, the policy does not address the root issue and risks backfiring. The yen has recently plummeted to its weakest level against the dollar in 40 years, largely due to mounting inflation concerns. Supporting the yen alleviates price pressures and stabilizes currency markets. However, Japan would need to purchase yen with dollars from its reserves, selling U.S. Treasuries and driving dollar interest rates up. Bessent does not want to raise borrowing costs for Americans, hoping to intercede at an awkward time for the Federal Reserve.",
  "summary": "Treasury Secretary Scott Bessent’s decision to join Japan in supporting the yen was the first joint intervention of its kind for decades and took investors by surprise. There’s a respectable case for such cooperation: The U.S. and Japan can both benefit, at least for a while. But the policy fails to tackle the underlying problem and could easily backfire — not least by drawing the Federal Reserve…",
  "key_points": [
    "Treasury Secretary Scott Bessent supports yen alongside Japan",
    "First joint intervention of its kind in decades",
    "Risks backfiring by driving dollar interest rates up"
  ],
  "editors_take": "Bessent's intervention to support the yen, though aimed at alleviating price pressures, risks driving up dollar interest rates and raising borrowing costs for Americans at an awkward time for the Federal Reserve.",
  "illustration": "https://urgent.news/ill/327652.png",
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Korea Times",
        "title": "Bessent's defense of the Yen is a risky innovation",
        "url": "https://urgent.news/2026/08/09/bessents-defense-of-the-yen-is-a-risky-innovation-328466",
        "published": "2026-08-09T00:47:04.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}