The David Lin Report · Thursday, August 6, 2026
The US government, under Treasury Secretary Scott Bessent, authorized the purchase of an estimated $5 to $10 billion in the Japanese yen market to counteract its historic 40-year low against the dollar. This marks the first such intervention by the US since the 1998 Asian financial crisis, aiming to stabilize the yen and, by extension, regional and global economies.
“Then all of a sudden, it spiked dramatically. Uh from 164 all the way back to 157 to the US dollar. And that's because the US government, uh under the supervision of Secretary Treasury Scott Bessent, authorized the purchase of.”
“And, Joe, this is more than just a market intervention that through our conversations with them, we believe that they are going to continue to put the right policies in place that will lead the yen to get back to more of a normal equilibrium price.”
“So, so you have those three factors going on. The US intervention was to stop the yen from falling. Why? Because if the yen falls, the Japanese economy is hurt. And if the Japanese economy is hurt, it has a ripple effect throughout the global economy.”