Will Policy Chaos Trigger a Flight From the Dollar?

The stock-market turbulence unleashed last week by the White House’s wildly fluctuating trade policy was frightening enough — but it’s no longer the scariest omen for the economy. Investors have started to ask what was until recently an unthinkable question: Are US government bonds still safe?

Although the $28.6 trillion market for Treasuries usually triggers few headlines, it has profound implications for economic and financial stability. One hopes Treasury Secretary Scott Bessent is following it closely and urging the White House to do the same. If confidence in US government debt should be lost, the harm could be impossible to reverse.