How to restore confidence in the U.S. dollar—and why it’s faltering in the first place

Last week, President Trump announced a 90-day pause on his escalated tariff regime for all countries but China. Despite the apparent relief, it became clear that damage had already been done to America’s place in global financial markets. The dollar continued to lose value, extending its decline against a trade-weighted basket of currencies to 10% for the year. Last Thursday’s 10-year Treasury auction was awful, with yields on 10-year debt spiking by amounts not seen in 40 years to 4.5%. The 30-year Treasury yield is now approaching 5%.