Former U.S. Treasury Secretary Janet Yellen is expressing deep concerns about the U.S. Treasury market.

The Treasury market, vital for global finance, is showing troubling signs. Increased yields and a declining dollar indicate a loss of investor confidence. This shift is largely influenced by ongoing trade tensions and tariff policies.

President Trump's tariff policies aim to boost domestic manufacturing but create unpredictability. This uncertainty complicates international trade and affects not only U.S. firms but also global investors seeking stability.

Yellen points out that the current market isn’t dysfunctional, but it signals a concerning confidence gap in U.S. policymaking. With U.S. Treasuries being a global benchmark, this gap could have widespread implications.

Eroding trust in the U.S. economy due to erratic tariff policies can deter global investment in U.S. assets. This shift can challenge not only the U.S. economy but also those of allied nations, creating a ripple effect.

As tariffs fluctuate, investor confidence is at stake. Future Federal Reserve actions and tariff adjustments will be crucial to restoring stability and minimizing long-term economic consequences for both the U.S. and global markets.

Yellen emphasizes the need for vigilant policymaking. Addressing tariff impacts requires a balanced approach that safeguards the U.S. economy while maintaining global confidence.