Former U.S. Treasury Secretary: U.S. Debt Decline Indicates Loss of Confidence in U.S. Policies and Financial Assets

According to Jinse, former U.S. Treasury Secretary Janet Yellen has commented on Trump's tariff plans. She stated that the rationale for Trump's tariff policy is "unclear and totally unjustified." In an interview with Bloomberg, Yellen said, "The move to remove tariffs and lower tariffs is positive, but we are in a world filled with enormous uncertainty."

Even as investors, governments, and consumers face various uncertainties, the U.S. economy remains strong, and she believes the Federal Reserve does not need to intervene at the moment. Yellen said, "If there is a real issue of financial stability, I believe the Fed would consider using its liquidity tools, just as it did in the early days of the COVID-19 pandemic. But we are not at that point yet." Regarding the soaring yields on U.S. Treasury bonds, Yellen stated, "I do not think we have seen a total dysfunction of market liquidity, but the pattern indicating loss of confidence in U.S. economic policy and the safety of fundamental financial assets is indeed very concerning." (Jinshi)