Bessent ready to repeat joint yen intervention, urges bigger Fed backstop
U.S. Treasury Secretary Scott Bessent has pledged to continue coordinated foreign exchange interventions to stabilize the yen. He is also calling for an expansion of the Federal Reserve's FIMA Repo Facility to provide a stronger backstop for international monetary authorities during market stress.
Why it matters
Strengthening the FIMA facility would increase the Federal Reserve's role in global financial stability, potentially complicating the policy agenda for new Fed Chair Kevin Warsh.
FILE PHOTO: U.S. Treasury Secretary Scott Bessent speaks to members of the media at the White House in Washington, D.C., U.S., July 30, 2026. REUTERS/Kylie Cooper/File Photo
Aug 2 : U.S. Treasury Secretary Scott Bessent said on Sunday he will not hesitate to repeat a U.S. and Japanese coordinated foreign exchange intervention that countered disorderly yen movements and urged that a Federal Reserve backstop for foreign central banks and monetary authorities be "upsized."
Bessent indicated in a social media posting on X that the Fed's Foreign and International Monetary Authorities lending facility was used in the coordinated action on Friday, which was confirmed by Japan's finance ministry and President Donald Trump.
"The FIMA Repo Facility is an important backstop. We should encourage it to be upsized in the coming months," Bessent said.
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