Bessent: US Ready to Repeat Joint Yen Intervention, Urges Fed Backstop Expansion
US Treasury Secretary Scott Bessent announced on August 3 that Washington is ready to repeat coordinated foreign exchange interventions with Japan to defend the yen.
The joint intervention aims to counter disorderly market movements and address the yen's severe undervaluation, which has been destabilizing international trade.
Bessent stated via social media that the US 'strongly supports' Japan's efforts to correct the yen's undervaluation and warned speculative short-sellers that the US 'will not hesitate to participate in further joint intervention.'
The Treasury Secretary also urged the expansion of the Federal Reserve's FIMA Repo Facility, which would provide a larger buffer for foreign governments struggling to defend their domestic currencies against a rampant US dollar.