Bessent attacks Warren over yen intervention query, offers ‘Foreign Exchange for Dummies’ lesson

By America Pulse · Based on reporting from CNBC

Treasury Secretary Scott Bessent launched a sharp personal attack on Senator Elizabeth Warren, a Democrat from Massachusetts, accusing her of lacking a basic understanding of foreign‑exchange markets. He posted the criticism on X after Warren sent a letter asking for details about a rare U.S. intervention in the Japanese yen.

Bessent’s Response to Warren

In his X post, Bessent called Warren’s August 13 letter “sciolistic” and said she knows less about foreign‑exchange markets than she does about banking. He offered her and her staff a “Foreign Exchange for Dummies” tutorial and labeled her question a “remedial error.” Bessent’s reply, dated Thursday, clarified that the Treasury swapped existing Exchange Stabilization Fund foreign‑currency assets for yen, without any new congressional appropriation or credit extended to Japan. He stressed that Japan owes the Treasury nothing.

Clarifying the Intervention

Bessent defended the yen purchase as essential to protect U.S. economic interests, warning that a disorderly yen could unsettle global markets and lift U.S. borrowing costs. His one‑page response, however, omitted several specifics Warren requested. The Treasury’s exact yen purchase amount, the execution rate and the current value of the position were not disclosed. A Reuters photo from July 31 showed Bessent’s notepad with the note “Buy Japanese Yen (JPY) $5‑10 bil.” He also did not confirm whether the European Central Bank was consulted before the euro sale or provide the detailed legal justification Warren sought.

Warren’s Rebuttal

Warren answered on X, saying Bessent’s effort to prop up a foreign currency had failed and noting that a prior Treasury‑market intervention was criticized by his mentor as burning “two centuries” of credibility. She added that President Trump’s economy was crushing families and suggested Bessent should concentrate on that issue instead.

Record Yen Support

The yen purchase marked the first coordinated U.S.–Japan effort to strengthen the currency since 1998. Japanese Finance Ministry data released Friday showed Japan spent 15.4 trillion yen—about $96.5 billion—supporting its yen between July 30 and August 26, a record for that period. Senate Banking Committee Democratic spokeswoman Saloni Sharma said Bessent should focus on lowering the cost of living for American families rather than “petty grievances with Senator Warren.”

Source: CNBC · 2026-08-28