Bessent attacks Warren over yen intervention query, offers ‘Foreign Exchange for Dummies’ lesson

Live updates

1. 17d ago

   Treasury Secretary Bessent Clashes With Senator Warren Over Yen Intervention

   Treasury Secretary Bessent criticized Senator Elizabeth Warren after she questioned recent currency interventions, offering her a "Foreign Exchange for Dummies" tutorial. Bessent defended the joint U.S.-Japan effort to prop up the yen, warning that disorderly currency moves could destabilize global markets and eventually force U.S. interest rates higher. This exchange follows record spending by Japan to support its currency as the yen fell below the 160 mark. While Japan's ministry confirms massive spending, reports on the exact total vary between $96 billion and $98.7 billion.

   Why it matters

   Currency interventions are used by governments to prevent rapid devaluation that can trigger economic instability. The yen's decline creates volatility that affects international trade and monetary policy. Bessent's defense highlights the U.S. role in coordinating these efforts to maintain global financial order.

   What is confirmed

   • Treasury Secretary Bessent offered Senator Elizabeth Warren a "Foreign Exchange for Dummies" tutorial.
   • Japan spent a record amount to support the yen over the past month.
   • Bessent stated that disorderly yen moves can destabilize global markets.
   • Bessent warned that yen disorder could raise U.S. interest rates.
   • The yen fell below the 160 mark.

   Still unconfirmed

   • Japan spent $98.7 billion to prop up the yen in a joint move with the U.S.
   • Japan spent $96.5 billion to support the yen over the past month.
   • Japan spent $96 billion in yen interventions.

   What to watch next

   • Official confirmation of the total amount spent on yen interventions
   • Further legislative queries from Senator Warren regarding Treasury currency strategy
   Sources used for this update (8)

   1. WSJ — Japan Spent Record $98.7 Billion to Prop Up Yen in Joint Move With U.S.
   2. Bloomberg.com — Bessent Says a ‘Disorderly Yen’ Could Ultimately Raise US Rates
   3. Reuters — Japan spent record $96.5 billion to support yen over past month, ministry data shows
   4. CNBC — Bessent attacks Warren over yen intervention query, offers ‘Foreign Exchange for Dummies’ lesson
   5. New York Post — Exclusive | Treasury secretary blasts Elizabeth Warren, offers her ‘Foreign Exchange for Dummies’ tutorial
   6. France 24 — Japan spent record $96 bn in yen interventions: ministry
   7. Reuters — Bessent says disorderly yen moves can destabilize global markets
   8. Moomoo — The yen falls below the 160 mark; Bessent defends last month's intervention, warning that yen disorder would push up U.S. interest rates
   confidence 90%