US Treasury Secretary's Currency Insights

I have asymmetric information. I am the house now

Extraordinary words from US Treasury Secretary Scott Bessent as he challenged

investors to counter his efforts to strengthen Japan's currency.

Early in the year, the US made a rare move to help prop up

the Japanese yen in

a joint intervention. Bessent says he makes market calls with

inside

information, and pushed back on claims

that he's purely taking risks.

When- whenever people say, "Oh, well, Treasury

Secretary's taking a risk," I say, "Well,

you know, it's my dream. I have asymmetric information."

Mm-hmm.

Like, I am the house now. So when we intervene with the

Japanese yen,

I have pretty good insight into what the Japanese, what the

Bank of Japan's gonna do. You can bet against me if you want.

While his bravado failed to move the market Tuesday, Bessent

is still in the money

with his bet on the yen. The yen has strengthened against the

greenback since

Japan's July intervention, and bold comments aren't new from the

former hedge fund manager, who has challenged everything from the

level

of US interest rates to the yield on treasuries.

Next up for investors is seeing if Bessent is right in his call for Japan

to

raise rates to bolster the bull case for the yen.

Dollar-yen traders are also turning their focus elsewhere in

the US to

inflation data on Friday that may impact the Federal Reserve's

interest rate decision next week.