world-economy

Treasury Pushes Fed to Expand Currency Support Facility for Japan

Treasury Secretary Scott Bessent has urged the Federal Reserve to increase a liquidity facility available to Japan, signaling closer coordination between U.S. and Japanese monetary authorities on currency stability. The request marks an unusual direct appeal from Treasury to the central bank on international monetary matters, highlighting concerns over yen volatility. Japan deployed approximately $34 billion in market interventions Friday to defend its currency, building on related actions taken in coordination with U.S. officials the previous day. The interventions underscore mounting pressure on the yen amid broader currency market turbulence. Treasury and Federal Reserve officials typically maintain operational independence, making Bessent's explicit call for expanded facilities a notable departure from standard practice between the two institutions.