Elizabeth Warren (エリザベス・ウォーレン) of the US Senate Banking Committee formally requested that the Treasury secretary disclose by 28 August the legal basis and cost breakdown for the US-Japan coordinated yen-buying intervention at the end of July. The intervention was carried out jointly by Japan and the United States, and ESF euro reserves are reported to have been mobilized, although the amount has not been disclosed.
Elizabeth Warren (エリザベス・ウォーレン), the ranking Democratic member of the US Senate Banking Committee, formally issued an ultimatum to Treasury Secretary Scott Bessent (スコット・ベッセント), demanding full disclosure by 28 August of the legal basis and cost breakdown for the US-Japan coordinated yen-buying intervention on 31 July. The intervention is described as the first coordinated intervention by Japan and the United States since 1998, and the mobilization of euro reserve funds had been reported. By requesting the documents, Warren indicated that she intended to confirm the reasons for the intervention and the transparency of the cost burden.
As background to the intervention, the Japanese government and the Bank of Japan conducted a unilateral intervention first on the night of 30 July, and the yen briefly approached the ¥164 level. Japan and the United States then coordinated an intervention from late on 31 July, pushing the yen back to the ¥155 level. It has been acknowledged that the Ministry of Finance mobilized ESF euro reserves, but the specific amount has not been disclosed. Finance Minister Katayama (片山) formally announced the coordinated intervention and said that further coordinated interventions would be carried out without hesitation. Vice Minister of Finance Mimura (三村) described the US-Japan financial alliance as complete.
Warren's letter questioned whether sufficient consultations had been held with the European Central Bank (ECB) before the intervention and also pointed to uncertainty over when the ECB had actually been informed of the intervention. Reports by BNP, CNBC and others said that the timing of the ECB's involvement differed, while the US Treasury had not commented as of the time of reporting. Warren also requested an assessment of the impact of turmoil in Japan's financial markets on US employment, wages and financial stability.
One view among market participants is that a core motive for the intervention was to prevent Japan from selling large amounts of US Treasuries to defend the yen. Japan is the world's largest holder of US Treasuries, and such sales could push up long-term US interest rates. The intervention involving the Argentine peso was also raised, with the Trump administration's trade policy cited as a background factor. Attention is now focused on the Bank of Japan's decision at its September monetary policy meeting.