Fed Eyes $2 Trillion Bailout as Treasury Market Melts Down

PatriotR Daily News 04/14/25

FINANCIAL NEWS

​Fed Eyes $2 Trillion Bailout as Treasury Market Melts Down

A hidden financial crisis is unfolding behind the headlines: a massive $1 trillion+ leveraged hedge fund trade in U.S. Treasurys is collapsing. Funds like Citadel and Millennium, leveraged up to 10:1, are being forced to unwind positions as volatility surges and liquidity evaporates.

As Treasurys are dumped, yields spike and swap spreads collapse, threatening the foundation of global finance. The Federal Reserve is reportedly preparing a $2 trillion bailout to prevent a full breakdown of the Treasury market.

This goes beyond Wall Street—banks are absorbing toxic debt, and retirement accounts, savings, and 401(k)s could be next in the fallout.

Analysts warn: this could be worse than March 2020. Read More.

ECONOMIC NEWS

Trump Feared Depression, Not Just Recession, Amid Tariff Fallout

According to a Wall Street Journal report, President Trump admitted privately that his sweeping tariffs could cause a recession, but he wanted to avoid a depression—a more severe economic collapse.

As bond markets tumbled and the 10-year Treasury yield spiked, Trump reversed course, pausing most reciprocal tariffs for 90 days but raising duties on China to 125%. The decision sparked the S&P 500’s best day since 2008.

Trump reportedly told aides he was willing to accept economic pain, but pressure from collapsing markets and investor fear pushed him to act sooner. Treasury Secretary Scott Bessent’s growing influence and ongoing global trade negotiations also played a role in the pivot.

Trump later downplayed the panic, saying investors were getting “a little yippy.” Read More.

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