US Treasury Used Reserve Assets for Yen Intervention, Bessent Tells Warren
US Treasury Secretary Scott Bessent confirmed the department exchanged foreign-currency reserves for yen, responding sharply to Senator Elizabeth Warren's demand for details.
Washington: The US Treasury Department has confirmed that it drew on existing foreign-currency holdings within its Exchange Stabilization Fund to acquire yen, a move tied to recent currency market intervention.
Treasury Secretary Scott Bessent disclosed the transaction in a pointed response to Democratic Senator Elizabeth Warren, who had pressed the department for a more detailed account of the intervention. Bessent's reply confirmed the use of the fund's assets but offered little additional elaboration.
The Exchange Stabilization Fund is a Treasury reserve account typically used for currency market operations. By swapping its existing foreign-currency assets for yen, the department avoided the need for a fresh appropriation or direct dollar sale.
The exchange underscores the administration's willingness to use available financial tools to influence currency markets, even as lawmakers seek greater transparency over such operations. Warren's request for a fuller explanation suggests ongoing congressional scrutiny of the Treasury's intervention strategy.