Treasury Secretary Fires Back at Senator Warren Over Yen Intervention Details

Senator Elizabeth Warren, ranking member of the Senate Banking Committee, requested details on the Treasury's recent yen-buying operation, questioning the potential cost to taxpayers and the legal justification for using the Exchange Stabilization Fund. Treasury Secretary Scott Bessent responded with a pointed letter, asserting that the purchase was funded by existing ESF foreign-currency assets, involved no new congressional appropriation, and did not extend credit to Japan, meaning no repayment obligation exists.

He referenced the statutory authority under Section 5302 that permits the Treasury secretary, with presidential approval, to intervene in foreign-exchange markets. Bessent argued that stabilizing the yen protects U.S. economic interests by preventing market disruptions that could raise borrowing costs for American households and businesses. He also contrasted the yen intervention with a prior ESF operation in Argentina, describing the latter as a short-term liquidity measure. The correspondence concluded with a sarcastic suggestion that Warren and her staff take an entry-level international finance course or accept a “Foreign Exchange for Dummies” tutorial.