Trump and the Fed are caught in a "Chicken Game," where one side must make a concession.

BlockBeats News, April 22nd, market analysts said that if the market wants to feel a broader market anxiety, just look at the U.S. Treasury. The current long-term U.S. Treasury yield has started rising again, as trading unfolds gradually this week, which will keep the risk sentiment tense. At the moment, traders and investors are gradually losing confidence in reaching any trade agreement in the short term, and U.S. assets are also taking a heavy hit. It was the bond market that led Trump to make a concession on the tariff issue. However, after two weeks of chaos, the current situation is not any better than it was then.

Essentially, Trump and the Fed must have one side make a concession first, playing a game of "chicken." If Powell and his colleagues take action, urgently purchasing U.S. Treasuries, this will bring some short-term relief. However, the signal sent by this move is that Trump's tough stance on tariffs will last longer (FX678).