Bessent vs Warren: Yen Intervention Sparks Clash Over Economic Policies

Treasury Secretary Scott Bessent clashed with Senator Elizabeth Warren over the US intervention in the Japanese yen, which plummeted to a 40-year low. Bessent accused Warren of knowing 'even less' about foreign exchange markets than banking, suggesting she take an introductory course and offering a 'Foreign Exchange for Dummies' tutorial.

The dispute centers on Treasury's use of its Exchange Stabilization Fund to sell euros and purchase yen. Bessent argued the intervention was necessary to prevent disorder in Japanese currency markets from spilling into global markets, potentially increasing US borrowing costs. He claimed Japan owes no new funds to the US, as Treasury simply exchanged foreign-currency assets it already held for yen.

Warren countered that USTaxpayers could bear the cost if Japan fails to repay Treasury. She pointed out that the intervention has not worked and criticized Bessent's Treasury-market policies. Warren argued the administration should focus on economic pressures facing American households, rather than intervening in foreign currency markets.