Feds Kashkari: Investors are pulling out of the U.S.

CoinRank News: Federal Reserve Chairman Kashkari said on Friday that recent market trends show that investors are leaving the United States, the safest place to invest, as Trumps trade war escalates. He said that in recent days, as U.S. Treasury yields have risen, the dollar has depreciated against global currencies, a trend opposite to what you would normally see. Typically, when you see a significant increase in tariffs, I expect the dollar to appreciate. I think the fact that the dollar is falling at the same time makes the argument that investor preferences are shifting more credible, Kashkari said. He also said: Investors around the world see the United States as the best place to invest, and if that is the case, we will have a trade deficit. So one way that its manifesting now is lower yields on all kinds of U.S. assets. If the trade deficit falls, investors might say, well, the United States is no longer the most attractive place to invest in the world, and then youll see bond yields rise. However, Kashkari pointed out that what he sees is stress in market operations, not serious dislocations. (CNBC)