Yellen: The rationale for the tariff policy is unclear and unwise, but the Federal Reserve (FED) does not need to intervene for now.

Jin10 data reported on April 15, the former U.S. Treasury Secretary Yellen stated on Monday that the rationale for Trump’s tariff policy is “not clear, and not wise at all.” Yellen indicated that the recent turmoil in the bond market and the weakness of the dollar reflect a “loss of confidence,” although things have not yet reached the point where The Federal Reserve (FED) needs to intervene. She stated: “The measures to cancel and drop tariffs are positive, but we are in a world full of great uncertainty.” She expressed confusion over some of the targets of the tariff measures. Yellen said: “If there are genuine concerns about financial stability, I believe the FED would consider using liquidity tools as it did at the start of the pandemic. But we are not at that point yet.”