Bessent says "buy yen" note was meant for reporters to see

The U.S. Treasury Secretary said the message highlighted excessive won volatility, voiced optimism on Japan's policy path and said policy matters more than intervention.

Summary

U.S. Treasury Secretary Bessent said a notepad message reading "buy yen" was deliberately written so reporters would notice it, adding that the point was to draw attention to excessive volatility in the won. He said he is optimistic about Japan's policy path and argued that while intervention can send a signal to markets, policy is what ultimately matters. Bessent also said it is reasonable for the Federal Reserve to consider expanding the FIMA repo facility (lending tool for foreign central banks), adding that the instrument is no different from foreign-exchange swap lines.

Terms & Concepts
  • FIMA repo facility: Lending tool for foreign central banks
  • foreign-exchange swap lines: Central bank arrangements to access foreign currency
  • intervention: Official market action to influence currency prices