{
  "id": 328466,
  "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",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-09T00:47:04.000Z",
  "source": {
    "name": "The Korea Times",
    "slug": "the-korea-times-koreatimes",
    "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 jointly support the yen alongside Japan marks a rare and unexpected collaboration between the two nations in decades. On the surface, there appears to be merit in this cooperation, as both the U.S. and Japan stand to gain - at least temporarily. However, this policy does not address the root cause of the issue and may turn out to be counterproductive. Moreover, it risks involving the Federal Reserve in exchange rate policies during a highly sensitive period.\n\nOver the past few months, the yen has plummeted to its lowest level against the dollar in 40 years. This depreciation is primarily attributed to mounting worries about inflation. Ironically, the weakening currency exacerbates the inflation problem, creating a vicious cycle. By endorsing the yen, Japan would need to purchase it using dollars from its reserves, which would entail selling U.S. Treasuries and consequently driving up dollar interest rates. Although the stabilization of the yen would be advantageous for both the U.S. and Japan, Bessent is wary of increasing borrowing costs for Americans. He hopes to find a balanced approach that avoids exacerbating the situation further.",
  "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 the yen jointly with Japan.",
    "Collaboration aims to stabilize the yen amid inflation concerns.",
    "Bessent worries about potential increase in U.S. borrowing costs."
  ],
  "editors_take": "Bessent's defense of the yen may offer temporary gains for the US and Japan but risks counterproductive effects and higher borrowing costs for Americans by potentially involving the Fed in exchange rate policies.",
  "illustration": "https://urgent.news/ill/328466.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",
        "published": "2026-08-09T00:22:04.000Z"
      }
    ]
  },
  "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."
}