US euro sale to prop up yen blindsided European Central Bank

The US blindsided the European Central Bank through a historic currency intervention designed to support the yen. According to the Financial Times, Washington sold euros to purchase yen before notifying its counterparts in Frankfurt. Christine Lagarde and Scott Bessent only communicated after the transaction had occurred. This unexpected move left the European Central Bank unaware of the US strategy until the intervention was already executed, marking a significant shift in coordination between the two major economic powers.