U.S. Treasury Secretary Scott Bessent¡¯s call for the Federal Reserve to boost a facility that Japan can use to support its currency has put renewed attention on the ties between the two institutions, which typically operate at arm¡¯s length.
After the Treasury joined forces with Japan to prop up the yen, Bessent on Sunday praised the Fed¡¯s Foreign and International Monetary Authorities Repo Facility (FIMA), which allows foreign governments to access dollars using their Treasury holdings as collateral.
In a post on social media, Bessent described the Fed facility as an important support for Â鶹´«Ã½ efforts and said ¡°we would encourage it to be upsized in the coming months.¡±
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