J.P. Morgan said that the US Treasury has limited liquidity resources to carry out a new round of collaborative foreign exchange intervention with Japan; however, if the US uses unconventional methods, the scale of intervention funds is expected to expand drastically. Strategist Junya Tanase and others wrote in the research report that as of June, the US Treasury's Foreign Exchange Stabilization Fund held about 13 billion euros in assets and 255 billion US dollars in assets. Compared to Japan's previous intervention scales from 2022 to 2026, the current funding volume is small. J.P. Morgan pointed out that the US Treasury can significantly expand its intervention ammunition by liquidating its International Monetary Fund special drawing rights and replacing foreign currency assets with US dollars. Under this scenario, the Treasury could theoretically mobilize up to $187 billion; if the Federal Reserve were to take action, the scale of intervention could actually double again. The strategist wrote, “Despite this, we believe that the US Treasury cannot carry out unlimited intervention operations. The Foreign Exchange Stabilization Fund has limited funding. If additional funds are added, it is likely that congressional funding will be needed.” According to the report, the scale of US intervention in the foreign exchange market in the past was usually between 1 billion and 2.5 billion US dollars, far lower than the current US dollar and euro liquid assets held by the Treasury.

J.P. Morgan said that the US Treasury has limited liquidity resources to carry out a new round of collaborative foreign exchange intervention with Japan; however, if the US uses unconventional methods, the scale of intervention funds is expected to expand drastically. Strategist Junya Tanase and others wrote in the research report that as of June, the US Treasury's Foreign Exchange Stabilization Fund held about 13 billion euros in assets and 255 billion US dollars in assets. Compared to Japan's previous intervention scales from 2022 to 2026, the current funding volume is small. J.P. Morgan pointed out that the US Treasury can significantly expand its intervention ammunition by liquidating its International Monetary Fund special drawing rights and replacing foreign currency assets with US dollars. Under this scenario, the Treasury could theoretically mobilize up to $187 billion; if the Federal Reserve were to take action, the scale of intervention could actually double again. The strategist wrote, “Despite this, we believe that the US Treasury cannot carry out unlimited intervention operations. The Foreign Exchange Stabilization Fund has limited funding. If additional funds are added, it is likely that congressional funding will be needed.” According to the report, the scale of US intervention in the foreign exchange market in the past was usually between 1 billion and 2.5 billion US dollars, far lower than the current US dollar and euro liquid assets held by the Treasury.