Treasury discusses yen intervention and potential repricing of U.S. gold reserves

Scott Bessent commented on the Treasury Department's intervention to prop up the yen. The Treasury Department has been using unconventional measures, including buybacks and yen intervention, to manage soaring Treasury yields, which are pressured by a $2 trillion federal budget deficit and debt-interest costs exceeding $1 trillion annually. The U.S. holds the world’s largest gold reserves, significantly more than Germany, which holds the second largest amount.

The discussion centers on the potential for the Treasury Department to price its immense gold holdings at current market rates, which could increase the asset's book value from over $11 billion to potentially $1 trillion. This idea follows past comments by Scott Bessent regarding monetizing the asset side of the U.S. balance sheet.