Now Reading: Senator Warren asks US Treasury chief to justify yen intervention
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Senator Warren asks US Treasury chief to justify yen intervention
Senator Warren asks US Treasury chief to justify yen intervention
Senator Elizabeth Warren has written to Treasury Secretary Scott Bessent demanding a detailed justification for the Trump administration's intervention in the yen market, including how much taxpayer money was spent. The action,…
The Story in Brief
Senator Elizabeth Warren has written to Treasury Secretary Scott Bessent demanding a detailed justification for the Trump administration's intervention in the yen market, including how much taxpayer money was spent. The action, a joint US-Japan effort to support the yen, was the first of its kind since 1998.
Warren, the top Democrat on the Senate Banking Committee, also asked Bessent to disclose the legal basis for using the Treasury's Exchange Stabilization Fund (ESF) and whether the European Central Bank was consulted. The Treasury chief has confirmed the operation but has not released specifics.
The Indian Opinion
This is not a partisan quibble over a technicality. The ESF is a crisis tool, not a slush fund for foreign-exchange bets. Warren's demand for a clear accounting of the cost and legal rationale is a basic check on executive power. Whether the intervention was a prudent hedge against a sell-off of US Treasuries by Japan or a political favour, taxpayers deserve to know the price tag. Bessent's response on August 28 will settle the question.
Source: livemint.com
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