The financial turmoil emanating from Britain and Japan is not yet enough to prompt the U.S. Treasury to intervene to buoy the battered pound or yen, with officials expressing no urgency to act, a stance foreign exchange market experts say is likely to hold unless much wider market disruptions develop.
The Treasury so far has voiced little concern that market volatility will meet that threshold, with the damage largely limited to pound- and yen-denominated assets, which in the United Kingdom's case prompted the Bank of England on Wednesday to buy long-dated U.K. debt.
Federal Reserve officials also appear nonplussed at this time, with Cleveland Fed President Loretta Mester on Thursday saying she sees nothing in U.S. market functioning that would derail the U.S. central bank's efforts to contain inflation through stiff interest rate increases.