JP Morgan says the US Treasury has limited liquidity to support coordinated yen intervention with Japan, though unconventional steps could materially expand capacity. Strategists Junya Tanase et al. note the Treasury's Exchange Stabilization Fund held about €13bn of euro assets and $25.5bn of other foreign assets as of June, small versus Japan's roughly $35–60bn intervention scale in 2022–26. Converting IMF Special Drawing Rights into dollars and swapping foreign-currency assets into dollars cou

JP Morgan says the US Treasury has limited liquidity to support coordinated yen intervention with Japan, though unconventional steps could materially expand capacity. Strategists Junya Tanase et al. note the Treasury's Exchange Stabilization Fund held about €13bn of euro assets and $25.5bn of other foreign assets as of June, small versus Japan's roughly $35–60bn intervention scale in 2022–26. Converting IMF Special Drawing Rights into dollars and swapping foreign-currency assets into dollars could, in theory, boost Treasury firepower to about $187bn; Federal Reserve participation could effectively double that. JP Morgan adds it does not expect unlimited Treasury intervention because ESF resources are finite and additional funding would likely require congressional appropriation.