Janet Yellen, former US Treasury Secretary, has labeled President Donald Trump's tariffs as unreasonable. She described the new administration's trade policy as lacking clarity, suggesting that the American leader's actions are contributing to rising global economic tensions.
The official highlighted falling investor confidence during both Barack Obama's administration and Trump's first term as president. The recent turmoil in bond markets and the weakening dollar have only reinforced her view. However, she believes that current circumstances are not dire enough to warrant immediate central bank intervention.
Yellen expressed confusion over some of the objectives of Trump's tariff campaign, which is based on the trade deficit with each country. She noted that this strategy unfairly impacts economies that have seen their trade deficits grow in recent years, especially those where American companies have diversified their supply chains to reduce dependence on China.