[By Guancha Observer Network, Xiong Chaoyi] On April 23rd local time, Ken Griffin, CEO of the globally renowned hedge fund Citadel, warned that the global trade war initiated by U.S. President Trump might damage the reputation of the United States and its Treasury market.
According to reports from CNBC, the World Economic Summit hosted by Semafor, a new media company, was held in Washington D.C., and as one of the major financial backers of the Republican Party, Griffin made these remarks at this event. When the host mentioned the recent significant fluctuations in the U.S. Treasury market and asked, "What impact does this have on the 'American brand'?"
In response, Griffin first agreed with the host's use of the term "American brand": "You've chosen the right word, the 'American brand.' The U.S. is not just a country... it's a global brand. Whether it's our culture, our fiscal strength, or our military power, the U.S. has long transcended the scope of an ordinary nation." He also claimed: "For most people around the world, this has been an ideal benchmark, but we are now eroding this brand."
"In financial markets, no brand can compare with the brand of U.S. Treasury markets and the strength of the dollar. The strength and credit value of U.S. Treasuries are unmatched by any other brand. We are putting this brand at risk," Griffin said. "When you have a brand, the president, the treasury secretary, and the commerce secretary need to deliberate carefully. You must act in a way that respects and strengthens this brand because repairing the damage caused by tarnishing this brand may take a lifetime."
On April 23rd, Ken Griffin attended the World Economic Summit hosted by Semafor. Bloomberg News
CNBC pointed out that Griffin's hedge fund had over $65 billion in assets under management at the beginning of 2025, and he had voted for Trump, being a major donor to Republican politicians. However, he has consistently strongly criticized Trump's trade policies and bluntly condemned the president's rhetoric as "empty talk."
After U.S. President Trump proposed the so-called "reciprocal tariffs" on April 2nd, he suddenly announced a 90-day deferral for most countries on April 9th, retaining only a 10% "benchmark tariff." Some believe that this move is related to the massive selling off of U.S. Treasuries.
Reuters noted that the mass selling off of U.S. Treasuries led to the largest increase in long-term yields since the outbreak of the COVID-19 pandemic in 2020, exacerbating the losses for the United States, which should have played the role of a haven in financial turmoil. Some investors speculated that given the impact of Trump's trade policies, global foreign exchange reserve managers such as China might be reassessing their holdings of U.S. Treasuries.
The New York Times emphasized that U.S. Treasuries, backed by the credit of the U.S. government, have long been considered one of the safest and most stable markets in the world. However, recently, the performance of the U.S. Treasury market has been quite abnormal. Typically, during times of financial market instability, investors flock to U.S. Treasuries for safety, driving up bond prices and lowering yields. But recently, the opposite has happened.
"Since Trump's election, what we have seen has actually challenged the entire foundation of the U.S. dollar as a reserve currency," analyzed Ray Attrill, head of foreign exchange strategy at Australia and New Zealand Banking Group (ANZ). "Almost overnight, the U.S. seems to have lost its safe-haven status."
On April 14th local time, former U.S. Treasury Secretary Janet Yellen told CNBC that the recent selling off of U.S. Treasuries indicates a "worrying decline" in confidence in U.S. policy-making. Yellen also believes that the simultaneous rise in Treasury yields and fall in the dollar is unusual, indicating that "investors are starting to avoid dollar assets" and "questioning the safety of U.S. Treasuries, which form the cornerstone of the global financial system."
In fact, the economic policies of the current U.S. administration have drawn widespread condemnation domestically and internationally. Previously, on April 10th, Yellen criticized Trump's economic policies as the "most severe self-inflicted harm" she had ever seen.
Lawrence Summers, who also served as U.S. Treasury Secretary and former president of Harvard University, warned that due to Trump's tariff measures, the U.S. may be heading towards an economic recession, potentially resulting in 2 million Americans losing their jobs and each household facing at least a $5,000 loss in income.
Now domestically, the trade war and chaotic policies have significantly reduced expectations for U.S. economic growth, causing heavy blows to financial markets. American farmers, losing their largest market, are grumbling, while "tariff refugees" dependent on Chinese goods are flooding into Chinese e-commerce platforms. Public dissatisfaction with the Trump administration is rapidly rising. Prominent experts and scholars, including Nobel laureate economist Paul Krugman and Thomas Friedman, author of "The World Is Flat," believe that Trump will lose the trade war with China.
Under domestic and international pressure, the White House and the U.S. Treasury Secretary have "lowered the tone." On April 22nd local time, Trump denied that he would adopt a "hardline stance" against China and believed that an agreement could be reached, with "significant reductions" in tariffs on China.
"Talks are open; if it comes to fighting, we're ready." China's position on this trade war initiated by the U.S. is clear and consistent. Previously, China has repeatedly emphasized that it does not want to fight, but it is not afraid to fight either. The U.S.'s逆行 actions are unpopular and will ultimately end in failure.
This article is an exclusive piece by the Guancha Observer Network and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7496860798929682953/
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