Politics
US Treasury’s Firepower for Yen Support May Be Limited, JPM Says
Key Points
US Treasury’s Firepower for Yen Support May Be Limited, JPM Says The US Treasury has limited liquid resources to support further coordinated currency intervention alongside Japan, though its firepower could be expanded substantially if officials resort to more extraordinary measures, according to JPMorgan Chase & Co. The Treasury’s Exchange Stabilization Fund held about $13 billion of euro-denominated assets and $25.5 billion of dollar assets as of June, modest compared with the size of...
US Treasury’s Firepower for Yen Support May Be Limited, JPM Says
The US Treasury has limited liquid resources to support further coordinated currency intervention alongside Japan, though its firepower could be expanded substantially if officials resort to more extraordinary measures, according to JPMorgan Chase & Co.
The Treasury’s Exchange Stabilization Fund held about $13 billion of euro-denominated assets and $25.5 billion of dollar assets as of June, modest compared with the size of Japan’s intervention operations between 2022 and 2026 which ranged between roughly $35 billion and $60 billion, strategists including Junya Tanase wrote in a note.