Federal Reserve's Kashkari: Investors are pulling out of the U.S
ChainCatcher news, according to Jinshi reports, Federal Reserve's Kashkari stated on Friday that recent market trends indicate that investors are moving away from the U.S., the safest investment location, amid the escalation of Trump's trade war.He mentioned that in recent days, as U.S. Treasury yields have risen, the dollar has depreciated against global currencies, which is contrary to what you would typically expect. "Usually, when you see significant tariff increases, I would expect the dollar to appreciate. I think the fact that the dollar is simultaneously declining makes the narrative of a shift in investor preference more credible," Kashkari said.He also stated, "Investors around the world view the U.S. as the best investment location, and if that were true, we would see a trade deficit. Therefore, one way this is manifesting now is through the declining yields of various U.S. assets." "If the trade deficit decreases, investors might say, 'Well, the U.S. is no longer the most attractive investment location in the world,' and then you would see bond yields rise."However, Kashkari pointed out that what he sees is "pressure" in the market operations, rather than severe chaos.
