Just like with the yen, America cannot save the AI bubble

AI Summary

The United States coordinated with Japan to intervene and support the Japanese yen, aiming to stabilize government bond yields amid concerns over the artificial intelligence market bubble. The move reflects economic policy actions to influence financial markets and AI sector perceptions.

In a rare intervention, the US has propped up the Japanese yen. The move is seen as a bid to hold off a further rise in yields for US government bonds – amid Japan’s sell-off of US Treasuries to fund its shoring up of the yen – a rise that threatens the US artificial intelligence bubble. That the United States bought yen for the first time in decades – coordinating with Japan – had a bigger psychological impact on the market than Tokyo’s interventions alone. But give it three or four weeks and...