Bessent Vows to Repeat Joint Yen Intervention and Upsize Fed Backstop
U.S. Treasury Secretary Scott Bessent has stated that he will not hesitate to repeat a joint yen intervention with Japan, which countered disorderly yen movements and pushed the currency to new 40-year lows against the dollar last week.
Bessent praised the direction of Japanese Prime Minister Sanae Takaichi's government, saying it is moving into an exciting new phase of Abenomics, as nearly 15 years of powerful stimulus have created durable, robust underlying economic dynamics.
The U.S. Treasury Secretary also urged that a Federal Reserve backstop for foreign central banks and monetary authorities be 'upsized.' He indicated that the Fed's Foreign and International Monetary Authorities lending facility was used in the coordinated action on Friday, which was confirmed by Japan's finance ministry and President Donald Trump.
Bessent expressed his support for Japan's decisive market and monetary steps to correct the substantial undervaluation of the yen. The U.S. Treasury Secretary stated that the FIMA Repo Facility is an important backstop and encouraged it to be upsized in the coming months.