U.S. Former Treasury Secretary: The Decline in U.S. Bonds Indicates People's Loss of Confidence in U.S. Policy and Financial Assets

BlockBeats News, April 15, former US Treasury Secretary Janet Yellen commented on Trump's tariff plan. She said the rationale behind Trump's tariff policy is "unclear and entirely nonsensical."

Yellen stated in an interview with Bloomberg, "The practice of removing tariffs and reducing tariffs is positive, but we are in a world full of enormous uncertainty."

Despite facing various uncertainties for investors, governments, and consumers, the US economy remains strong, and she believes the Federal Reserve currently does not need to intervene. Yellen said, "If there is a real financial stability problem, I believe the Fed would consider using its liquidity tools, as it did in the early days of the COVID-19 pandemic. But we are not there yet."

Regarding the surge in US Treasury bond yields, Yellen stated, "I do not believe we have seen a dysfunction in the market's liquidity entirely, but the pattern of people losing confidence in US economic policy and the safety of underlying financial assets is indeed very worrying."