Senator Elizabeth Warren has asked Treasury Secretary Scott Bessent to clarify the legal basis for the Trump administration's intervention in the yen market, continuing the veteran Democrat's pattern of scrutinizing the government's foreign exchange policies.
In a letter dated August 13, Warren wrote, "To date, the administration has not provided a detailed justification for this intervention, nor has it formally disclosed how much taxpayer-related money was used to purchase yen."
After taking action on July 31, Bessent confirmed media reports that the U.S. and Japan had jointly intervened in currency markets for the first time since 1998 to support the yen, but has not yet disclosed the amount of funds used. He stated that the operation utilized euros held in the Treasury Department's Exchange Stabilization Fund (ESF).
Regarding the use of the ESF, Warren said, "Congress intended that these authorities be used prudently to promote the national interest." She demanded that Bessent "provide the legal analysis for the administration's use of the Exchange Stabilization Fund" and requested a response by August 28.
As the top Democrat on the Senate Banking Committee, Warren also asked Bessent to explain the expected costs of the action to U.S. taxpayers, as well as the "scale and conditions of the financial support" the U.S. is currently considering providing to Japan. The Treasury Department did not immediately respond to a request for comment on Warren's letter.
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