US Debt Will Collapse! China Rejects U.S. Request, Continue To Sell Large Amounts of U.S. Treasuries

#china #america #debt #dollar #money After the Federal Reserve raised interest rates by 25 basis points in July, the market generally predicts that the Federal Reserve is likely to stop raising interest rates, which is beneficial to the recovery in the value of U.S. Treasury bonds. From an economic perspective, it may not make sense to continue selling U.S. Treasuries. Therefore, many countries adopted a holding strategy based on market information at the time. In the last two months, however, things have changed. Due to the continued rebound in domestic inflation in the United States, the CPI index rose from 3% to 3.7%, and the core inflation rate continued to be high. The Federal Reserve had to make “hawkish“ remarks many times, increasing market expectations for interest rate hikes. Even by the most conservative estimates, the Fed is likely to raise interest rates again this year. So, over the next two months, we may see another sell-off of U.S. Treasuries around the world. So why did China choose to buck the trend and reduce its holdings of U.S. Treasury bonds?