Treasury Secretary Scott Bessent Criticizes Sen. Elizabeth Warren Over Yen Intervention Letter
U.S. Treasury Secretary Scott Bessent criticized Senator Elizabeth Warren for an error in her letter questioning a U.S.-Japan intervention to support the yen, offering what he called a 'Foreign Exchange for Dummies' lesson. In her August 13 letter, Warren initially suggested Japan might owe money to the Treasury if it failed to repay, though she later clarified that no credit was extended and described the transaction as a sale of euros in exchange for yen. Bessent’s response did not address key details such as how much yen were purchased or at what rate. Bessent defended the intervention as necessary to prevent market instability but left several questions unanswered, including whether the European Central Bank had been consulted and the legal basis for the action. Japan spent approximately $96.5 billion supporting its currency between July 30 and August 26, marking a rare coordinated effort with U.S. authorities since 1998.
Topics: Elizabeth Warren foreign exchange Scott Bessent U.S. Treasury