U.S. Treasury Secretary Bessent said traders trying to short the yen are free to challenge him, arguing that he now makes market judgments with what he described as "inside information" or, more specifically, asymmetric information. Speaking about criticism that a treasury secretary takes risks by entering the market, Bessent said that setup suits him because he has an information advantage. He also revisited several past interventions, including a joint yen purchase with the Japanese government on July 31. The yen strengthened sharply at the time, but part of that gain faded over the following trading sessions. According to his account, some traders pointed to limits on the amount of foreign exchange funding the U.S. Treasury could deploy for such purchases. Bessent, who previously served as a hedge fund executive, said that when authorities step into the yen market, he has a fairly good sense of what the Japanese government, the Bank of Japan, and Japanese policymakers are likely to do next. He then delivered a direct challenge, saying that if traders want to oppose him, they are welcome to try.
BlockBeats reported on Sept. 9 that U.S. Treasury Secretary Bessent challenged traders attempting to short the Japanese yen, saying that when he makes market calls now, he is effectively working with what he described as "inside information."
Bessent said, "Whenever someone says, 'Oh, the Treasury secretary is taking a risk by doing this,' I think that's my dream, because I have asymmetric information.'"
Bessent, a former hedge fund executive, looked back on several occasions when he stepped into the market. One example he cited was a joint purchase of yen with the Japanese government on July 31. The yen briefly strengthened sharply at the time, but gave back part of those gains over the following trading days. Traders said one reason was that the U.S. Treasury had limited foreign-exchange buying capacity available for such operations.
Bessent added: "I'm the house now, so when we intervene in the yen market, I have a pretty good sense of what the Japanese government, the Bank of Japan, and Japanese policymakers are going to do. If you want, go ahead and trade against me."
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