Bessent tells Congress US-Japan yen intervention supports exports
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US Treasury Secretary Scott Bessent told Congress on Tuesday, September 15, that the United States' joint intervention with Japan in the foreign exchange market to prop up the yen in late July was more beneficial to American exports. In testimony before the US House Committee on Financial Services, Bessent said the United States spent only a small amount of money on this historic intervention, and that supporting the yen was consistent with the US objective of preventing US interest rates from rising. He noted that a stronger yen means the Japanese government, the largest foreign holder of US government bonds and a key ally, does not need to sell US assets to fund its foreign exchange intervention. Kyodo News reported that the United States and Japan bought yen on July 31 after the yen weakened to near 164 yen per dollar, its lowest level in 40 years, marking the first such operation since 1998 during the Asian financial crisis. During the three-hour testimony, Bessent also disclosed that he will meet Chinese Vice Premier He Lifeng this weekend for final preparations for a summit between President Donald Trump and President Xi Jinping. Trump previously said he would welcome Xi at the White House on September 24. Regarding allegations that Chinese banks were involved in financial transactions with Iran, Bessent said the United States held very good private discussions with the Chinese side before the summit and expects further talks during Xi's official visit to the United States.
