Former U.S. Treasury Secretary: The rationale for tariff policy is unclear and unwise, but the Federal Reserve does not need to intervene for now

ChainCatcher news, former U.S. Treasury Secretary Yellen stated on Monday that the rationale for Trump's tariff policy is "unclear and not wise at all."

Yellen noted 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 a point where the Federal Reserve needs to intervene. She stated, "The measures to cancel and reduce 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 real concerns about financial stability, I believe the Federal Reserve would consider using liquidity tools as it did at the beginning of the pandemic." "But we are not at that point yet."