A simple understanding of the consequences of the surge in 10-year US Treasury yields: The current scale of US government debt (as of March 2025) is about US $34.8 trillion, and the yield of 10-year treasury bond bonds has risen to 4.482%, leading to an estimated annual interest expenditure of more than US $1.2 trillion (3.5% of GDP). If the yield continues to rise (such as to 5%), interest expenses may increase to $1.4 trillion, exacerbating fiscal pressure and potentially forcing the government to cut spending or increase taxes. The combination of high debt and high interest rates may trigger market concerns about US dollar credit, increase the risk of economic recession, or prompt the Federal Reserve to intervene to stabilize the market. The Federal Reserve may intervene in the following ways to cope with the pressure brought by high US government debt and interest rates: Interest rate cut: Lowering the federal funds rate (currently 4.25% -4.50%), reducing borrowing costs, easing the interest burden on the government and businesses, and stimulating economic growth. Quantitative easing (QE): restart the asset purchase plan, buy treasury bond to lower the long-term yield (such as the yield of 10-year treasury bond), and reduce the interest expenditure on government debt. Quantitative tightening (QT) adjustment: slowing down or suspending balance sheet tightening (currently reducing by $60 billion per month), increasing market liquidity, and stabilizing the bond market. Forward looking guidance: Through clear policy communication (such as committing to low interest rates), guide market expectations, reduce volatility, and boost investor confidence. Emergency measures: In the event of severe market turbulence, direct liquidity support may be provided (such as through repurchase agreements) to prevent systemic financial risks. Summary: The Federal Reserve may intervene through measures such as interest rate cuts, QE, or suspending QT to lower yields, alleviate debt pressure, and stabilize the market, but it needs to balance inflation and economic overheating risks. This is the reason for the rebound of Bitcoin that everyone has seen, and the brothers in the cryptocurrency circle like to bet on expectations the most.