Becent says that the disorderly fluctuations in the yen will lead to an increase in US interest rates

ON 29 AUGUST, THE UNITED STATES TREASURY SECRETARY, SCOTT BECENT, SENT A LETTER TO DEMOCRAT SENATOR ELIZABETH WARREN TO DEFEND HIS INTERVENTION IN THE JAPANESE YEN EXCHANGE RATE WITH THE FOREIGN EXCHANGE STABILIZATION FUND (ESF) LAST MONTH. BECENT STATED THAT DISORDERLY FLUCTUATIONS IN THE JAPANESE YEN MARKET COULD LEAD TO JAPAN BEING FORCED TO SETTLE DOWN AS A MAJOR HOLDER OF UNITED STATES DEBT, THEREBY DESTABILIZING THE GLOBAL MARKET AND ULTIMATELY INCREASING THE COST OF BORROWING BY UNITED STATES HOUSEHOLDS AND BUSINESSES. HE REFUSED TO DISCLOSE THE MAGNITUDE OF THE INVESTMENT IN THE INTERVENTION, CONFIRMING THE USE OF EXISTING ESF FOREIGN CURRENCY ASSETS FOR THE PURCHASE OF THE YEN AND SUGGESTING THE USE OF THE EURO. LAST MONTH, JAPAN INVESTED A RECORD $96.4 BILLION TO SUPPORT THE YEN. BÉSENTE STRESSED THE LEGALITY OF THE ACTIONS AND THAT THE UNITED STATES HAD NOT PROVIDED ANY CREDIT TO JAPAN. IN THE LETTER, HE HAD REPEATEDLY COMPLAINED ABOUT WARREN AND SUGGESTED THAT SHE “TAKE AN INTRODUCTORY COURSE ON INTERNATIONAL FINANCE”. THE TWO MEN HAD A VERY TENSE EXCHANGE OF VIEWS AT THE PARLIAMENTARY HEARING。