Fed may widen lending backstop after US-Japan yen intervention

The Federal Reserve could be pulled deeper into the Trump administration's effort to stabilize Japan's currency after the United States joined Tokyo in a rare yen-buying intervention. CNBC reported Treasury Secretary Scott Bessent wants the Fed to expand a lending facility that would let Japan support the yen without causing turbulence in the $29 trillion US Treasury market. The move follows a sharp slide in the yen, which last week weakened to nearly 164 per dollar, its lowest level since 1986. After the coordinated action, the currency rebounded about 3.5% to just under 157 by Monday afternoon in the US. The intervention also comes as investors question the durability of the yen carry trade that has helped channel demand into Treasurys and US stocks.