The uncertainty about Trump’s customs policy not only falter the stock exchanges – the US state bond market also has pressure. JPMorgan CEO Jamie Dimon now warns of systemic risks and does not consider the Fed to intervene.
• Sales pressure on US state bonds
• Critical voices from the financial world
• Jamie Dimon considers intervention by the Fed as possible
That happens on the bond market
The global uncertainty around US President Donald Trump’s customs policy has Financial markets Shaked and especially put under pressure on the bond market. Instead of fleeing as usual in times of crisis in US state bonds, investors sold both stocks and bonds – a rare and disturbing signal that has already been compared with exceptional phases such as pandemic or financial crisis in 2008, as CNN reports.
The sales pressure on US state bonds drove the yields of the ten-year bonds from under four to over four and a half percent within just a few days. An abrupt market reaction that even the white house alerted: “People became a little queasy,” Trump therefore told reporters. “The bond market is very difficult”. The US President then changed a change of course by postponing many of his planned tariffs by 90 days – with the exception of China.
“The bond market was afraid of the President,” said Ed Yardeni, President of Yardeni Research, to Matt Egan von CNN. “The bond supporters screamed that they are dissatisfied with what was going on and there is a risk of recession.”
But other voices from the financial world also criticized the procedure of the US government. Bill Ackman, for example, published a post by X by explaining: “Our stock market is down. The bonders rise and the dollar falls. These are not a sign of a successful policy.”
Our Stock Market is down. Bond Yields are up and the dollar is declining. Thesis are not the Markers of Successful Policy.
I am receiving an Increasing Number of emails and texts from small business people I do business with or have invested in, Expressing Fear that they will …
– Bill Ackman (@Billackman) April 9, 2025
Jamie Dimon: Fed may have to intervene
According to The Tell, JPMorgan boss Jamie Dimon also recently warned of the consequences of increasing volatility on the US state bond market. If uncertainty, he even sees a possible intervention by the US Federal Reserve Fed as necessary – however, this is also problematic.
In a conference call for the first quarter, Dimon said that the currently applicable, in his opinion, “poor” banking rules contribute to instability. If regulatory relief does not exist, the FED may have to intervene again. “I think that is a bad political idea, because every time there is turbulence in the markets, the Fed has to intervene and convey,” said Dimon.
Dimon has long been committed to loosening regulation in the banking sector and, among other things, calls for changes to the treatment of government bonds within the framework of the so -called additional debt ratio. Fed chairman Jerome Powell recently said that changes could help improve the functioning of the market for government bonds.
Overall, the persistent uncertainty about tariffs, bond markets and regulatory questions not only burden financial markets, but also the consumer mood and corporate profits in the first quarter. Dimon therefore warns of well -thought -out political decisions – not in the sense of the banks, but for the well -being of the markets.
International investors are worried
And international investors are also increasingly becoming the focus of the debate about the latest increase in US bonded.
Market analyst Ed Yardeni sees a possible reason in the growing nervousness of international investors. “Beat investors may be slowly worried that Chinese and other foreigners could start selling their US state bonds,” he wrote according to CNBC. However, a withdrawal of foreign buyers could not only lead to higher interest rates, but also undermine confidence in the US debt market.
At the same time, however, the FED faces a dilemma: If global customs policy continues to drive inflation, a key interest rate could be more difficult. The central bank influences the short -term interest directly – but the long -term interest rates could continue to increase on the free market if dealers fear that a looser Monetary policy The inflation tightened.
How the US bond market will continue to develop in the future remains to be seen.
Editor finance.net
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