Yellen “Trump policy, Shaking trust in U.S. and dollar assets”

Janet Yellen Biden Administration Treasury Secretary (Source: Bloomberg)

Former U.S. Treasury Secretary Janet Yellen expressed strong concerns about President Donald Trump's recent economic policies. Former Secretary Yellen pointed out that “the Trump administration's tariff and exchange rate-related measures are weakening international confidence not only in the country called the United States but also in dollar-based assets.”

Former Secretary Yellen's remarks are related to the situation where the existing perception that global investors considered U.S. assets as safe assets is shaking due to President Trump's recent tariff policy. If the predictability and consistency of future policies are broken, the preference for dollar assets in the global financial market may rapidly decrease.

The recent unstable flows in the U.S. treasury and foreign exchange markets are interpreted as evidence of these concerns. Yellen's remarks this time are even more significant as President Trump is pursuing a large-scale mutual tariff policy and advocating for a strong dollar.