Bessent Blasts Warren Over Yen Intervention Criticism

Treasury Secretary Scott Bessent fired back at Senator Elizabeth Warren's criticism of the government's intervention to prop up the Japanese yen, offering her a 'Foreign Exchange for Dummies' tutorial in a scathing response.

The exchange began when Warren demanded details about Treasury's use of the Exchange Stabilization Fund (ESF) as Washington joined Tokyo in buying yen after the currency plunged to a 40-year low. The ESF is used to stabilize foreign exchange markets and prevent disorderly market conditions that could destabilize global markets.

Bessent rejected Warren's premise that American taxpayers could be on the hook if Japan proves unable to repay Treasury, stating 'no new congressional appropriation was involved, and no credit was extended to Japan.' He noted that Treasury exchanged existing ESF foreign-currency assets for yen, and Japan owes nothing.