Treasury Secretary Testifies Yen-Buying Coordinated Intervention Cost Was Small
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U.S. Treasury Secretary Bessent testified on the 15th before the House Financial Services Committee, disclosing that the U.S. side's cost for the coordinated yen-buying intervention by Japanese and U.S. monetary authorities aimed at correcting the weak yen was "small." He stressed that a stronger yen would lead to expanded U.S. exports and is "desirable," and argued that if yen appreciation persists, foreign exchange intervention will become unnecessary, saying "Japan will no longer need to sell U.S. Treasury bonds to secure funding." Regarding Japan's foreign exchange intervention, he once again praised "the high transparency of the Ministry of Finance." The Japanese and U.S. monetary authorities stepped in at the end of July with their first coordinated yen-buying intervention in about 28 years, making clear their stance of not tolerating excessive yen weakness.
