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Treasury Secretary Scott Bessent Criticizes Senator Elizabeth Warren for Misunderstanding Foreign Exchange Markets

Treasury Secretary Scott Bessent issued a sharp personal critique of Senator Elizabeth Warren on Friday, accusing her of lacking a fundamental understanding of foreign exchange markets. The dispute arose after Warren requested specific details regarding the administration's intervention to support the Japanese yen. Bessent clarified that the United States did not lend money to Japan, but rather performed an asset swap by selling euros for yen from the Exchange Stabilization Fund. He noted that because no credit was extended, Japan owes the Treasury nothing, correcting Warren's initial suggestion that taxpayers would bear the cost of a potential default. While Warren defended her inquiry, she criticized the administration's economic performance, suggesting Bessent should focus on the cost of living for families under President Trump's economy. Bessent countered that the intervention was necessary to protect U.S. economic interests by preventing a disorderly yen from destabilizing global markets. Despite the technical correction, Bessent did not disclose the exact amount of yen purchased or the final execution rate, leaving several of Warren's specific questions unanswered.

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