Analysis: The trade war may have triggered a wave of selling off US financial assets

According to a report by Golden Finance, on the evening of April 21st Beijing time, the US stock market suffered another heavy blow, with the three major indexes opening lower and moving lower. At the same time, the US dollar also suffered a fierce sell-off, with the US dollar index falling below the 98 level for the first time since March 2022. In addition, US treasury bond bonds also fell in the short term. The yield of US 30-year treasury bond bonds once hit 4.989%; The yield of 10-year treasury bond once exceeded 4.4%. Wall Street warns that the "firing Powell" controversy has significantly weakened investor confidence, as the independence of the Federal Reserve has long been seen as a key safeguard for investing in US assets. Kathy Jones, chief fixed income strategist of Schwab Center for Financial Research, said that Trump may try to fulfill his threat to fire Powell, and investors should not rule out this possibility - this may aggravate the selling of US treasury bond bonds and US dollars. Vital Knowledge analyst Adam Crisafulli wrote, "Investors are facing a new macro risk source, namely Trump's threat to the independence of the Federal Reserve. This is closely related to the trade war, as tariffs may drive inflation to soar in the coming months, forcing Powell and other officials to hold their ground, even if the market is already volatile and the risk of economic downturn is rising." Crisafulli also said, "The simultaneous decline of stocks, the US dollar, and US bonds means that Trump's trade war may have triggered a wave of selling off US financial assets, a trend that cannot be reversed through negotiations