Yen Intervention

[Joe Leote]

Short informative report concerning recent Yen Intervention:

PNC Economics Research - Weekly Economic Roundup

Liberation Day 2025 is a red line in charts used to illustrate change in Yen trading patterns. I think US/Japan officials are feeling behind the 8 ball when it comes to strategic industrial policy to compete against China's explicit industrial policy with strict capital controls.

Joe

[William Meyer]

Haven't read it yet but someone tweeted out there is only 13 billion USD left for bessent to play with here to support the yen - not much, fund almost dry.

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[Joe Leote]

It appears the US Treasury Secretary is pressing Fed to increase funds available to Japan under the FIMA facility. This fact is being called a test of Fed independence although I wouldn't necessarily agree with that interpretation.

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[Joe Leote]

More discussion of the significance of Yen Intervention:

The Great Yen Intervention is a Problem for the Whole World & your Portfolio needs to Understand Why

Joe

[William Meyer]

Well the yen is now weaker than when Bessent bought last week.  The market won't let up until either boj signals a drastic change or bessent comes up with infinite cash to manage the currency.  Been a while but reminds me a bit of 'when genius failed - story of ltcm'. Moderate cash infusions fail once the market realizes their finite nature.  Only overwhelming firepower from the fed can do it.  Only difference today is they aren't nearly as dramatic - no meeting around mahogany table in the middle of the night.

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