Federal Reserve Kashkari: Investors are pulling out of the United States

On April 11, the Federal Reserve said on Friday that recent market trends show that investors are leaving the United States as the safest place to invest as Trump's trade war escalates. He said that in recent days, as U.S. Treasury yields have risen and the dollar has depreciated against global currencies, the trend is the opposite of what you usually see. "Normally, when you see a significant increase in tariffs, I would expect the dollar to appreciate. I think the fact that the dollar is falling at the same time gives more credibility to the claim that investor preferences are changing," Kashkari said. He also said: "Investors around the world see the United States as the best place to invest, and if that were the case, we would have a trade deficit. So one way it's showing up now is lower yields across asset classes in the US. "" If the trade deficit goes down, investors might say, well, the US is no longer the most attractive place to invest in the world, and then you'll see bond yields go up. "However, Kashkari pointed out that he was seeing" stress "in the functioning of the market, not serious disruption.