Trump tariffs spark US government debt sell-off

Confidence in the US economy is plummeting as investors sell off government debt due to escalating concerns over the impact of Donald Trump’s tariffs, causing the interest rate on US bonds to spike to the highest level since February. Stock markets have been falling sharply in response to the tariffs, leading some analysts to speculate that the US Federal Reserve may need to intervene with emergency purchases of US Treasuries to stabilize the bond market and potentially cut interest rates to protect US jobs amid fears of a recession. The introduction of tariffs by Trump threatens to disrupt global supply chains, with questions arising about the scale and type of investors selling US bonds, including the possibility of foreign countries like China divesting their holdings in response to the trade war.

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