Fed confirms it obeyed White House request for an unusual ‘rate check,’ weakening the dollar against foreign currencies

Fortune

by Jim Edwards

February 19, 2026

AI-Generated Deep Dive Summary

The U.S. Federal Reserve has confirmed that it conducted a rare "rate check" on behalf of the White House, targeting the dollar-yen exchange rate. This move, which involves requesting indicative quotes from foreign exchange markets, is typically seen as a precursor to active currency intervention. The action occurred earlier this year, leading to a sharp depreciation of the dollar against the yen, with the dollar dropping from ¥158.50 on January 23 to ¥152.45 by January 27. Such moves are extremely unusual in foreign exchange markets and signal an activist approach by the White House to keep the dollar weak, which can boost U.S. exports and attract foreign investment. The Fed's minutes revealed that this rate check was requested by U.S. Treasury officials as part of their efforts to weaken the dollar further. This intervention aligns with the administration's strategy to maintain a weaker dollar, despite the generally strong performance of the U.S. economy and low unemployment rates. However, sustaining this weakness could prove challenging, as market sentiment and economic fundamentals often favor a stronger dollar. The Fed's decision to keep its benchmark interest rate unchanged at 3.5% reflects a more cautious stance on further rate cuts, which has already led to a rally in the dollar, with gains of over 0.71% in the past five days. Analysts like ING's Chris Turner note that such interventions are rare and suggest a coordinated effort by both Washington and Tokyo to prevent the dollar from strengthening against the yen beyond certain thresholds. The move also highlights the White House's willingness to take unconventional steps to influence currency markets, which could have significant implications for global trade dynamics. As the dollar continues to weaken this year, businesses and investors will closely monitor whether these interventions can

Verticals

businessfinance

Originally published on Fortune on 2/19/2026