Bessent Fires Back at Warren Over Currency Exchange Criticism

U.S. Treasury Secretary Scott Bessent fired back at Sen. Elizabeth Warren (D-Mass.) over her criticism of a recent currency exchange transaction involving Japan, suggesting she take an international finance course to better understand the issue.

Bessent's letter, in response to Warren's inquiry about the use of the Exchange Stabilization Fund, explained that no new congressional appropriation was involved and no credit was extended to Japan. He stated that Japan owes the Treasury nothing and therefore poses no risk of default.

Warren had questioned Bessent's authority on the transaction, citing Section 5302 of the statute which gives the secretary with presidential approval the authority to deal in foreign exchange in support of orderly exchange arrangements. However, Bessent countered that 'Treasury's legal analysis begins with reading the statute,' implying Warren should do the same.

The exchange comes as the U.S. and Japan recently bought yen after it dipped to a 40-year low, using the Exchange Stabilization Fund for the first time since 1998.