'An erosion of trust': How Trump's policies are destabilizing the economy
Amid rising inflation, the war with Iran, global tariffs, and increasing national debt, investors are losing confidence in the U.S. economy, leading to a significant increase in U.S. Treasury bond yields. This erosion of trust, evidenced by central banks selling off their holdings, signals a potential destabilization of the economy, impacting everything from mortgages to credit card rates. The U.S. Treasury's attempts to artificially lower yields by manipulating bond purchases have been ineffective and further undermine investor confidence.
A decline in trust in U.S. Treasury bonds, the world's most widely held financial asset, could lead to higher borrowing costs across the economy, impacting consumers through increased interest rates on mortgages, car loans, and credit cards.
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