Bessent Defends Modest Cost of US-Japan Joint Yen Intervention
US Treasury Secretary Scott Bessent has defended the cost of a joint currency intervention between the US and Japan to prop up the Japanese yen. The intervention, which took place recently, was done at a 'modest' cost for the US, according to Bessent.
Bessent testified before a House Financial Services Committee hearing that the US was able to support Japanese policies, including Tokyo's desire for a stronger yen, with relatively little effort. He argued that a stronger yen is beneficial for American exporters, as it makes their products more competitive in international markets.
A stronger yen also means that Japan does not have to sell US assets to defend its currency, Bessent explained. This approach was seen as a way for the US and Japan to cooperate on economic issues while minimizing costs.