Under U.S. intervention, the yen exchange rate rebounded; Trump then warned Kishida: Don't forget Pearl Harbor
After giving Japan a sweet treat, Trump delivered a slap.
Over the recent weekend, Trump mentioned in an interview that the United States had intervened in the yen exchange rate, stating that the U.S. indeed spent considerable funds to support Japan's market stabilization. This was his "gesture of friendship" toward the Kishida administration and also aimed at maintaining global economic stability.
Proudly telling reporters, Trump said the U.S. always steps in when Japan needs help most, citing the solid U.S.-Japan alliance and emphasizing that the U.S. has the capability to do so.
But just a moment later, he turned around and admonished Japan, saying that although Japan has consistently maintained good relations with the U.S., the Pearl Harbor incident continues to loom between the two nations, evoking discomfort every time it's remembered.
This isn't the first time Trump has referenced Pearl Harbor. Earlier this year, during Kishida’s visit to the U.S., he jokingly remarked in front of him that the U.S. military doesn’t need to notify Iran beforehand before launching a strike—military tactics rely on surprise, just as Japan’s attack on Pearl Harbor caught America off guard without prior notice.
Immediately after uttering those words, the atmosphere became extremely awkward. Kishida’s forced smile instantly froze, yet he managed to maintain composure, at least avoiding a public display of anger.
As for the U.S. intervention in the yen exchange rate, its true motive wasn’t primarily to rescue the Kishida government from crisis. Rather, it stemmed from concern that if the yen keeps falling, Japan might sell U.S. Treasury bonds to stabilize its economy—this would directly drive down U.S. bond prices and raise America’s borrowing costs, potentially even undermining the credibility of the dollar under severe circumstances.
According to leaked notes from U.S. Treasury Secretary Bessent, the U.S. may have purchased between $5 billion and $10 billion in yen, which did help somewhat in stabilizing the yen’s exchange rate.
Yet this remains only a temporary fix. Unless the U.S. is willing to indefinitely support Japan—which is clearly impossible—no lasting solution exists.
Original source: toutiao.com/article/1872478951772164/
Disclaimer: The views expressed in this article are solely those of the author.