Former US Treasury Secretary: Falling US debt shows a loss of confidence in US policies and financial assets
Internet reports that former U.S. Treasury Secretary Janet Yellen expressed her views on Trump's tariff plan. She said the reasons for Trump's tariff policy were "unclear and completely unreasonable." In an interview with Bloomberg, Yellen said,"The move to eliminate tariffs and reduce tariffs is positive, but we are in a world full of huge uncertainties." Even with all the uncertainties faced by investors, governments and consumers, the U.S. economy remains strong, and she believes there is no need for the Federal Reserve to intervene at this time. Yellen said: "If there are real financial stability issues, I believe the Fed will consider using its liquidity tools, as it did in the early days of the COVID-19 epidemic. But we haven't reached that time yet." Regarding the surge in U.S. Treasury yields, Yellen said,"I don't think we are seeing a dysfunction in which market liquidity is completely exhausted, but the pattern that suggests a loss of confidence in U.S. economic policies and the safety of underlying financial assets is indeed very worrying." (Jin Shi)
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