Trump and the Federal Reserve Locked in a "Game of Chicken," One Must Yield First

According to Jinse, market analysts indicate that to feel the broader market anxiety, one only needs to look at U.S. Treasury bonds. The yield on long-term U.S. Treasuries has started rising again, which keeps risk sentiment tense as trading gradually kicks off this week. Under the current circumstances, traders and investors are losing confidence in reaching any trade agreements in the short term, severely impacting U.S. assets. It was the bond market that prompted Trump to make concessions on tariffs. However, after two weeks of chaos, the current situation is no better. Essentially, Trump and the Federal Reserve are playing a "game of chicken," and one side must yield first. If Powell and his colleagues act to urgently purchase U.S. Treasury bonds, it will provide some short-term relief. However, this move signals that Trump's tough stance on tariffs may persist longer.