Treasury Secretary Scott Bessent directed a sharp rebuke at Senator Elizabeth Warren after she questioned the recent U.S. intervention to support the Japanese yen. Warren’s August 13 letter inaccurately implied that Japan might owe money to the U.S. Treasury following the currency operation. Bessent corrected this in his response, clarifying that the Treasury exchanged existing foreign currency assets from the Exchange Stabilization Fund for yen, meaning no new congressional funding was used and Japan does not owe any repayment.

Despite correcting Warren’s initial misunderstanding, Bessent’s reply left important inquiries unanswered, including the exact quantity of yen bought, the transaction’s execution rate, and the current valuation of the position. This lack of detailed disclosure came even though a July 31 Reuters photo showed Bessent’s notes suggesting a planned purchase of $5 to $10 billion worth of yen. The letter also did not address whether the European Central Bank was consulted before selling euros or provide a detailed legal justification for the intervention.

The intervention marked a rare moment of cooperation between the U.S. and Japan, aimed at stabilizing the yen after it hit a 40-year low. Japan itself spent a record 15.4 trillion yen, approximately $96.5 billion, to support its currency between late July and late August. Bessent justified the coordinated action by emphasizing the risk that a disorderly yen decline could destabilize global markets and increase U.S. borrowing costs, affecting broader economic interests.

Senator Warren responded to Bessent’s harsh tone by highlighting recent Treasury setbacks and urging the Secretary to focus on domestic economic issues impacting American families. The tension between them reflects a broader debate about transparency and the appropriateness of government involvement in foreign exchange markets. Meanwhile, the Treasury Department has yet to provide further comments on the unresolved questions raised by Warren’s inquiry.