Bessent Fires Back at Warren Over Yen Transaction

U.S. Treasury Secretary Scott Bessent responded publicly to a letter from Senator Elizabeth Warren (D-Mass.) about the use of the Exchange Stabilization Fund in buying yen. The exchange was made after the currency dipped to a 40-year low, and Bessent explained that no new congressional appropriation was involved and no credit was extended to Japan.

Bessent's letter came as Senator Warren campaigned for Democratic candidates in North Carolina, including U.S. Senate candidate Roy Cooper. In her letter, Warren questioned Bessent's authority on the transaction, citing Section 5302 of the statute that gives the secretary with presidential approval the authority to deal in foreign exchange in support of orderly exchange arrangements.

Bessent shot back at Warren, saying 'Treasury's legal analysis begins with reading the statute. I recommend you try the same.' He also offered her a Foreign Exchange for Dummies tutorial to help her understand the transaction.