Bessent Sounds Alarm on Yen Volatility

U.S. Treasury Secretary Scott Bessent warned that a disorderly decline in Japan's yen could have far-reaching consequences for global markets, potentially leading to destabilization and higher borrowing costs for U.S. households and businesses.

In a letter responding to Sen. Elizabeth Warren, Bessent stated that sharp moves in the yen could trigger 'forced unwinds' of financial positions, which could have a ripple effect on global markets.

This warning comes as the U.S. Treasury Department has intervened to support Japan's yen, with Bessent defending Washington's actions.