Bessent Warns Yen Turmoil Could Lift U.S. Borrowing Costs

Treasury Secretary Scott Bessent defended the United States’ July yen intervention, saying disorderly yen volatility could spill into global markets and push up borrowing costs for American families and businesses. He noted the move used the Exchange Stabilization Fund’s foreign-currency assets to support orderly yen markets, without disclosing the amount, and stressed no credit was extended to Japan. Japan spent a record $96.4 billion to defend the yen, and the currency briefly weakened after the intervention, underscoring concerns that higher U.S. yields could follow from Yen volatility.