Former US Treasury Secretary: Tariff policy is unclear and unwise, but no need for Fed intervention yet
ChainCatcher reports, former US Treasury Secretary Yellen said on Monday that the rationale for Trump's tariff policy is "unclear and not wise at all."
Yellen stated that the recent turmoil in the bond market and the weakening of the dollar reflect "a loss of confidence," although things have not yet reached the point where the Federal Reserve needs to intervene. She said: "Measures to cancel and reduce tariffs are positive, but we are in a world of great uncertainty." She expressed confusion about some of the goals of the tariff initiatives. Yellen said, "If there is a real concern about financial stability, I believe the Federal Reserve will consider using liquidity tools as it did at the start of the pandemic. But we are not there yet."
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