Time is running out. How to replace the $8.9 trillion in U.S. Treasury bonds that are about to expire? Yellen is deeply anxious! The Federal Reserve has signaled a rate cut, and once rates are cut, a large amount of capital will quickly flow out of the U.S. In addition, the decline in Treasury yields may lead to unsold U.S. Treasury bonds, which is the situation Yellen is most unwilling to see.
Yellen's current most challenging issue is that the cycle logic in which the U.S. exploits the world through financial means has been broken. Foreign investors hold only $8 trillion in U.S. Treasury bonds, while approximately 76% of U.S. Treasury bonds are still within the United States. Faced with such a massive amount of maturing debt, Yellen has to make a difficult choice. Continuing to extend or roll over debt may trigger a national debt crisis in the U.S.