Scott Bessent: New Prince of the Yen?
6 Articles
6 Articles
The downfall of the yen has raised alarms on Wall Street and in financial centers all over the world. If the Bank of Japan sells its giant US Treasury bond reserve (which currently exceeds $1.2 trillion) to back its declining currency, the US bond market could plunge and drag the world economy into the abyss. That is why, on Friday, July 31, US Treasury Secretary Scott Bessent launched an unprecedented exchange rate intervention to prop up the a…
US Senator Elizabeth Warren asks Treasury Secretary Scott Bessent to justify the Trump administration's Yen intervention
Senator Elizabeth Warren pressed Treasury Secretary Scott Bessent to explain the Trump administration’s justification for intervening in the yen, extending the senior Democrat’s pattern of scrutinizing the Trump administration’s foreign-exchange policies.
Senator Elizabeth Warren writes to the Treasury: she wants to know how much money has been used to support the currency of Japan, largely already burned by the new downfall of the currency. And especially because, since Tokyo has enough reserves to do it for itself. An indication gives it the market: US 30-year-old debt yields have reached the record since 2001...
Interventions in the currency market have a long history. The youngest was a very special one.
US Treasury Secretary Scott Bessent is used to making reckless bets against central banks. He used to work for Soros Fund Management, the hedge fund that famously took down the Bank of England during the 1992 sterling crisis. But in late July, Bessent took a different tack: siding with a central bank to defend its currency. He tapped into US foreign exchange reserves to help the Bank of Japan (BoJ) buy yen after the Japanese currency weakened ab…
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