Fed Conducted Rare 'Rate Check' on Dollar-Yen Exchange at White House Request

The move is seen as a precursor to currency market intervention to weaken the dollar against the yen.

Feb. 24, 2026 at 12:15pm

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The U.S. Federal Reserve confirmed that its trading desk conducted a rare 'rate check' on the exchange rate between the U.S. dollar and the Japanese yen on behalf of the White House earlier this year. The implication is that the U.S. Treasury wanted to strengthen the yen versus the dollar, or weaken the dollar versus the yen. This led to a sudden drop in the dollar against the yen in late January.

Why it matters

A weaker dollar makes U.S. goods and services more affordable for foreign businesses and investors, boosting U.S. exports and foreign investment. However, the U.S. economy is currently robust, which typically leads to a stronger dollar, posing a challenge for the White House's apparent desire to keep the dollar weak.

The details

On January 23, the dollar was trading at ¥158.50 but then collapsed suddenly to ¥152.45 by January 27 after the Fed's trading desk made requests for 'indicative quotes' on the dollar-yen exchange rate at the request of U.S. Treasury officials. This move is seen as a precursor to active currency market intervention to weaken the dollar.

  • On January 23, the dollar was trading at ¥158.50.
  • By January 27, the dollar had collapsed to ¥152.45.

The players

U.S. Federal Reserve

The central banking system of the United States.

U.S. Treasury

The executive department responsible for promoting economic prosperity and financial stability, collecting taxes, and managing government accounts.

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What they’re saying

“Something like this is extremely rare in foreign exchange markets and is a sign of a more activist White House when it comes to FX [foreign exchange]. The move was clearly designed to deliver maximum impact and reflects the shared desire from both Washington and Tokyo that USD/JPY does not sustain a move through 160.”

— Chris Turner, Analyst

What’s next

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The takeaway

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