The ranking member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, Elizabeth Warren, asked Treasury Secretary Scott Bessent to explain the administration’s use of the Exchange Stabilization Fund to purchase Japanese yen after the currency fell to a 40-year low. The letter seeks disclosure of the amount of taxpayer-linked funds deployed and the administration’s assessment of the intervention’s benefits and risks to the U.S. economy. Warren raised concerns about potential taxpayer losses, particularly if Japan were unable to repay the Treasury, and questioned whether the operation produced lasting results after the yen surrendered half of its post-intervention gains. She also sought information on the prospect of further intervention and the decision by the Treasury and Federal Reserve, acting as fiscal agent, not to notify the European Central Bank in advance that euros would be sold to fund the yen purchase.
U.S. Senate Committee on Banking, Housing and Urban Affairs2026-08-14
U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member seeks disclosure and justification for Exchange Stabilization Fund yen intervention
Senate Banking Committee ranking member Elizabeth Warren asked the Treasury to justify its use of the Exchange Stabilization Fund to support the Japanese yen and disclose how much was deployed. She raised concerns about taxpayer exposure, the intervention’s limited lasting effect and the lack of advance coordination with the European Central Bank.