The Federal Reserve (FED) Kashkari: Investors are withdrawing from the United States

Jin10 data reported on April 11th, The Federal Reserve (FED) Kashkari stated on Friday that recent market trends indicate that investors are moving away from the United States as the safest investment location amid the escalation of Trump’s trade war. He noted that in recent days, as U.S. Treasury yields have risen, the dollar has depreciated against global currencies, a trend contrary to what is typically observed. “Usually, when you see a significant increase in tariffs, I would expect the dollar to rise. The fact that the dollar is simultaneously falling makes the narrative of changing investor preferences more credible,” Kashkari said. He also mentioned, “Investors around the world view the U.S. as the best investment location, and if that were the case, we would experience a trade deficit. Therefore, one way this is manifesting now is through declining yields on various U.S. assets.” “If the trade deficit decreases, investors might say, well, the U.S. is no longer the most attractive investment destination in the world, and then you would see bond yields rise.” However, Kashkari pointed out that what he sees is “pressure” in the functioning of the market, rather than severe chaos.