US Treasury Secretary Scott Bessent stated that it would be reasonable for the Federal Reserve to consider increasing the size of its Foreign and International Monetary Authority (FIMA) facility. This comes as Japanese authorities are looking to use the facility to support the yen.
Bessent noted that the purpose of the FIMA facility and other similar tools is to protect the US economy and prevent volatility from affecting the country. He also mentioned that the facility is a secure lending option, with countries posting collateral in exchange for loans.
FIMA Facility Background
The FIMA facility was created in 2020, and Bessent pointed out that the bond market has grown significantly since then. He believes that upsizing the facility would be a reasonable step, given the current market conditions.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.