Scott Bessent Blasts Elizabeth Warren, Says She Knows ‘Even Less’ About Forex Than Banking — Senator Fire

At issue is Treasury’s use of its Exchange Stabilization Fund to sell euros and purchase yen after the Japanese currency plunged to a 40-year low. Warren had argued that U.S. taxpayers could ultimately bear the cost if Japan failed to repay Treasury.

Bessent Says Japan Owes Treasury Nothing

Bessent rejected that characterization, saying Treasury simply exchanged foreign-currency assets it already held for yen.

“No new congressional appropriation was involved, and no credit was extended to Japan. Japan owes Treasury nothing,” Bessent wrote in a response on Thursday.

He argued the intervention was necessary because disorder in Japanese currency markets could spill into global markets and potentially increase U.S. borrowing costs.

However, Treasury has not disclosed the amount of yen purchased, the execution rate or the current value of the position. A Reuters photograph of Bessent’s notes showed a target of “$5-10 bil.” in Japanese yen, but Treasury has not confirmed that figure.

Elizabeth Warren Fires Back at Bessent

“Tough couple weeks for Sec. Bessent,” Warren wrote on X sharing Bessent’s post. “His effort to prop up a foreign currency hasn’t worked.”

She also pointed to criticism of Bessent’s Treasury-market policies and argued that the administration should focus on economic pressures facing American households.