U.S. Treasury Secretary Scott Bessent has signaled that Washington is prepared to repeat its recent coordinated foreign exchange intervention with Japan to counter disorderly movements in the yen.
Speaking on Sunday, Bessent emphasized that the administration will not hesitate to deploy such measures again if market volatility threatens financial stability.
In addition to the threat of further FX intervention, Bessent urged the Federal Reserve to expand its backstop facilities.
The Treasury chief argued that a larger Fed liquidity backstop is necessary to support global markets and prevent the kind of disorderly repricing that has plagued the yen in recent weeks.
The comments follow the first direct U.S. intervention to bolster the Japanese yen since 2011, a move that marked a significant escalation in Washington’s approach to currency stability.
The U.S. Treasury Department previously notified major financial institutions of its intent to intervene, coordinating closely with Japanese authorities to stabilize the currency.