Warren Presses Bessent for Details on Yen Intervention and ESF Use

US Treasury Secretary Scott Bessent has been asked by Senator Elizabeth Warren to justify the Trump administration's intervention in the yen, citing a lack of transparency and justification. In a letter dated August 13, Warren pressed Bessent for details on how much taxpayer-linked funds were spent purchasing yen, as well as the administration's legal analysis for using the Exchange Stabilization Fund (ESF). The ESF was used to intervene in the yen market, with euros being used from the Treasury's fund. Warren expressed concern that Congress intended for these authorities to be invoked judiciously to advance the national interest.

Warren also questioned Bessent on the expected cost to US taxpayers and the scale and conditionality of the US financial support currently under consideration for Japan. Additionally, she asked whether the Treasury consulted with the European Central Bank on the use of euros in the yen operation. The senator noted that the administration's justification for intervening in the yen remains unclear, and that the ESF was used to intervene in the Argentine peso market in 2025.

Warren has previously scrutinized the Trump administration's foreign-exchange policies, and this latest move is part of her ongoing pattern of inquiry. The Treasury did not immediately respond to a request for comment on Warren's letter. Bessent has said that the US made money on its support for Argentina but his department hasn't released specifics of that intervention.