Treasury Secretary Scott Bessent criticized Senator Elizabeth Warren for her understanding of foreign-exchange markets in response to her inquiries about a recent U.S. intervention in the Japanese yen. Warren's letter questioned the implications of selling euros to buy yen after the Japanese currency hit a 40-year low.
Bessent accused her of misunderstanding the situation, particularly regarding the financial obligations of Japan to the U.S. Treasury. He emphasized that the intervention was necessary to stabilize global markets and prevent increased U.S. borrowing costs.
However, his response left several of Warren's questions unanswered, including details about the amount of yen purchased and whether the European Central Bank was consulted. This intervention, marking the first coordinated U.S.-Japan effort since 1998, involved Japan spending a record 15.4 trillion yen, or about $96.5 billion, to support its currency.
The exchange reflects broader concerns about economic management under the current administration, with Warren suggesting that Bessent should focus on domestic economic issues rather than personal disputes