Bessent says disorderly yen moves can destabilize global markets

Live updates

1. 15d ago

   Treasury Secretary Bessent warns disorderly yen moves could raise US rates

   Treasury Secretary Bessent warned that disorderly yen volatility could destabilize global markets and eventually increase US interest rates. He defended a recent $97 billion intervention to support the yen, which has fallen below 160. While Bessent currently describes yen movements as "pretty contained," he emphasized the risk of spillover effects. In a separate conflict, Bessent criticized Senator Elizabeth Warren following her inquiries into the intervention, offering her a "Foreign Exchange for Dummies" tutorial. Bessent stated he expects the Bank of Japan to "do the right thing" regarding monetary policy.

   Why it matters

   The US Treasury recently coordinated a massive rescue effort to stabilize the Japanese currency. This intervention is critical because extreme currency swings can trigger broader financial instability across international borders. The Treasury has clarified that no debt is owed resulting from this $97 billion action.

   What is confirmed

   • Treasury Secretary Bessent warned that disorderly yen moves can destabilize global markets.
   • Bessent stated that a disorderly yen could ultimately raise US interest rates.
   • The US helped Japan execute a $97 billion yen rescue.
   • The Treasury clarified that no debt is owed regarding the yen intervention.
   • Bessent offered Senator Elizabeth Warren a "Foreign Exchange for Dummies" tutorial after her intervention query.
   • The yen has fallen below the 160 mark.

   Still unconfirmed

   • Bessent believes current yen moves are "pretty contained" and not disorderly.
   • Bessent expects the Bank of Japan to "do the right thing" on monetary policy.

   What to watch next

   • Bank of Japan monetary policy decisions
   • Further fluctuations of the yen relative to the 160 mark
   • Official responses from Senator Elizabeth Warren regarding the Treasury's comments
   Sources used for this update (11)

   1. Bloomberg.com — Bessent Says a ‘Disorderly Yen’ Could Ultimately Raise US Rates
   2. CNBC — Bessent attacks Warren over yen intervention query, offers ‘Foreign Exchange for Dummies’ lesson
   3. New York Post — Exclusive | Treasury secretary blasts Elizabeth Warren, offers her ‘Foreign Exchange for Dummies’ tutorial
   4. Reuters — Bessent says disorderly yen moves can destabilize global markets
   5. 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
   6. BeInCrypto — How the US Helped Japan Pull Off a $97 Billion Yen Rescue
   7. KuCoin — US Yen Intervention Reaches $97 Billion as Treasury Clarifies No Debt Owed
   8. TradingView — Bessent Clashes With Warren, Suze Orman Warns of Rising 'Danger' and More: This Week in Economy
   9. Investing.com — US Treasury’s Bessent warns yen volatility risks spillover to global markets
   10. 1470 & 100.3 WMBD — Bessent says yen moves ‘pretty contained’ and not disorderly
   11. Bloomberg.com — Bessent Expects BOJ to ‘Do the Right Thing’ on Monetary Policy
   confidence 95%