[JPMorgan: Limited Firepower for U.S. Treasury Intervention in Yen] Deep Tide TechFlow reports that on August 3, JPMorgan stated that the U.S. Treasury has limited liquidity resources to support further coordinated currency intervention with Japan. However, if officials take more unconventional measures, its firepower could be significantly expanded. Strategists including Junya Tanase wrote in a report that as of June, the Treasury's Exchange Stabilization Fund held approximately €13 billion in euro-denominated assets and $25.5 billion in dollar assets, which pales in comparison to Japan's intervention scale of approximately $35 billion to $60 billion between 2022 and 2026. JPMorgan noted that the Treasury could significantly expand its firepower by converting its holdings of International Monetary Fund Special Drawing Rights (SDRs) into dollars and exchanging foreign currency assets for dollars. In this scenario, the Treasury could theoretically mobilize up to approximately $187 billion, and the Federal Reserve's involvement could effectively double the scale of any intervention. However, they wrote: 'We do not believe the Treasury has unlimited capacity for intervention, as the resources of the Exchange Stabilization Fund are finite, and new funding may require congressional appropriations.' (Jin10)