Bessent Warns of Yen Volatility's Impact on US Interest Rates

Treasury Secretary Scott Bessent defended his move to support the yen in an August 27 letter responding to Democratic Senator Elizabeth Warren's inquiry.

Bessent warned that extreme volatility in the Japanese currency could trigger forced unwinds, destabilizing global markets and potentially raising borrowing costs for US families and businesses.

The Secretary emphasized Japan's significant holdings of US Treasuries, which he believes are vulnerable to market disruptions.