U.S. Treasury Secretary Scott Bessent on Tuesday said it would be reasonable for the Federal Reserve to consider increasing the size of a key emergency liquidity facility that Japanese authorities are looking to use in efforts to stabilise the yen, arguing that global bond markets have expanded significantly since the mechanism was created in 2020.
Speaking in an interview with CNBC, Bessent referred to the Federal Reserve’s Foreign and International Monetary Authorities (FIMA) repo facility and its network of central bank swap lines, saying these tools are designed to shield the U.S. economy from financial market stress originating overseas.
