US Treasury chief Bessent backs using US financial power as foreign policy tool

Bessent also spoke about the U.S. having joined Japan in a rare joint yen-buying intervention on July 31, which signaled determination to prevent a selloff in the yen and Japanese government bonds from spilling over into global markets.

"When we intervened with the Japanese yen, I have pretty good insight into what the Japanese, what the Bank of Japan is going to do, what Japanese policy makers are going to do," Bessent said.

The Financial Times reported that the Treasury chief cautioned market participants that challenging his interventions could invite pain. “I have asymmetric information. I am the house now,” the newspaper said Bessent said at the event, adding "you can bet against me if you want."

Despite Bessent's confidence in the direction of his interventions, which have included actions to counter a rise in long-term government bond yields, the real world impact has been mixed. The yen has rallied amid Middle East war developments and was at a seven-month high Wednesday amid pressure on the dollar.