US Treasury Secretary Scott Bessent is pushing for an expansion of the Federal Reserve’s FIMA repo facility, which allows foreign central banks to exchange US Treasury bonds for dollars. Currently capped at $60 billion per institution, the facility enables countries like Japan to obtain dollars to defend their currency without selling US bonds on the open market. The yen has reached historically low levels, prompting direct US intervention in July 2026 through yen purchases. This strategy notably aims to prevent a repeat of the chaos from the July 2024 yen carry trade unwind, which had briefly dragged Bitcoin below $50,000.
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