Exsecretary of the Treasury, Janet Yellen: “Trump tariffs damage global confidence in the US”

At the rate of tariff policies implemented by President Trump, Yellen says that these are affecting financial stability and weakens the dollar in the international market.

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• Yellen described Trump’s tariffs as “The worst self -inflicted wound” In decades.
• He assured that China seems to be willing to reduce tensions if the US does the same.
• Warns that measures are affecting the confidence of international markets in the US.

Janet Yellen, former secretary of the Treasure UU. During the Biden administration, he made harsh criticism of the tariff measures taken in recent weeks by President Donald Trump, warning that these measures would be “deteriorating global trust“On the US economy.

Yellen’s statements came to place during an interview conducted by the news agency Bloombergreviewed by Cryptopolitan, where the former official shared her reading on the measures recently taken by the Trump administration, qualifying them as “Little and nothing sensible.”

Dangers of tariff measures and economic policies

According to Yellen, escalation in the commercial war, especially with China, is not only affecting bilateral relations, but could “disengage” two of the world’s main economic powers. He added that prolonging these commercial conflicts could have structural consequences for the global role of the dollar and US financial assets.

During his speech, Yellen expressed his confusion before the Trump government tariff policy. He indicated as an example the case of Vietnam, a country to which the United States encouraged to produce alternative goods to those that were previously imported from China, seeking to diversify supply chains for national security reasons.

However, after promoting this strategy, reciprocal tariffs based on bilateral commercial deficits were imposed. Yellen described this contradiction as harmful and warned that the current levels of tariffs are “Almost prohibitive for trade.”

Warned that if these measures are maintained, US households will face “Very significant charges”, further complicating the economic recovery process. Although he acknowledged that the US economy is still robust, suggested that the Federal Reserve It could intervene only if financial stability concerns are aggravated.

Signs of distrust in the markets

In another interview for CNBC, Yellen described a “Unusual pattern” in financial markets during the last weeks.

In this regard, the former official said that, despite the absence of a liquidity crisis, the situation suggests a loss of confidence in the economic policy of the United States. A key example was the 10 -year treasure bonus performance to 4,438 %, together with a weakening of the dollar.

“Normally, in chaos times, there is a flight to safe assets such as Treasury Bonds”he explained. “But this time, the returns rose and the dollar fell, which suggests that investors are beginning to avoid assets called dollars, questioning their safety.”

Yellen stressed that this situation calls into question the foundations of the global financial system, while reflecting a growing concern about the course of US economic policy.

Forceful criticism of tariff design

In another interview with CNN previously carried out, Yellen did not hesitate to qualify the tariffs implemented by the Trump administration as “The worst self -inflicted wound” That he had observed in his career. He added that the damage caused by these measures is “immense”, and that its confusing design only adds uncertainty for consumers and companies.

He also noted that, although some tariffs could withdraw to relieve tensions, current policy creates a paralyzing environment that hinders economic planning and business investment.

“The structure and moment of tariffs are generating more questions than answers … Companies and households are trapped in a limbo of uncertainty”he said.

China and the possible path to distension

Despite the gloomy panorama, Yellen stressed that China seems to be willing to reduce its own commercial barriers if the United States takes the initiative. This possibility, according to the former official, offers a way to avoid a structural break between both powers.

“Eliminating these tariffs could be a crucial step towards stability,” affirmed.

However, while tariff policies continue to be dominated by unpredictability, Yellen warned that long -term damage could be difficult to reverse.

He reiterated that, for the moment, the Federal Reserve He does not see enough reasons to intervene, although he did not rule out the use of liquidity tools if the situation is aggravated.

Crypto market is not exempt

Yellen’s comments occur in the midst of the effects generated by US tariff policies, especially in stock markets, an impact that has also been felt among the main cryptocurrencies.

Taking for example the case of Bitcoin, The main digital currency has marked the direction pattern that the rest of the Altcoins have followed after the announcements and explanatoryness of President Trump.

According to market data, after the tariff announcements made on April 2, the price of Bitcoin He has faced strong volatility. In fact, the main digital currency fell to minimums close to USD $ 74,000 per unit days later, this in the middle of the tensions between China and the US. Product of the imposed rates and the progressive escalation of the measures.

As well as Bitcoin, The main Altcoins have also replicated movements in the main exchanges, so they have also seen pronounced falls and remarkable recoveries throughout this period.

Back with Bitcoin, At the time of editing, the main currency is quoted in USD $ 83,910 per unit, a figure that represents a fall close to 1% with respect to the values ​​seen yesterday at this time.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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