Yellen Raises Concerns Over U.S. Economic Policies and Investor Confidence

Former Treasury Secretary Janet Yellen voiced her concerns over President Donald Trump's tariffs, citing erosion of allies' trust and potential investor avoidance of U.S. assets. She highlighted worries about the safety of U.S. Treasuries amid recent yield fluctuations and cautioned against shifting to short-term bill issuances as a strategy.

Janet Yellen, former U.S. Treasury Secretary, expressed her dissatisfaction with President Donald Trump's fiscal policies, particularly the tariffs. She believes these actions are damaging U.S. alliances and deterring investors from American assets.

Yellen pointed out that last week's spike in U.S. Treasury yields—traditionally seen as safe investments—raises serious concerns about the bedrock of the global financial system. While yields fell slightly after temporary tariff exemptions for tech products were announced, Yellen remains wary about the broader economic implications.

She advised against a shift to short-term bill issuance in response to the yield increase, advocating regular and predictable issuance instead. Yellen also warned that Trump's actions are isolating the U.S. and could create opportunities for China to strengthen relations with key allies.

(With inputs from agencies.)