Bessent says a ‘disorderly yen’ would risk higher U.S. rates
U.S. Treasury Secretary Scott Bessent defended recent interventions to support the Japanese yen, warning that extreme currency volatility could destabilize global markets. He noted that such instability risks forcing the liquidation of U.S. Treasuries, which could ultimately drive up borrowing costs for American consumers.
Why it matters
The stability of the yen is critical to the global financial system, as Japan is a major holder of U.S. debt; fluctuations here directly impact U.S. interest rates.
U.S. Treasury Secretary Scott Bessent defended his move last month to support the yen, saying that any extreme volatility in the Japanese currency could feed through to higher U.S. interest rates.“Japan is a major holder of U.S. Treasuries,” Bessent said in a letter Thursday responding to Democratic Sen. Elizabeth Warren’s recent inquiry about the yen operation.
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