TechFlow news, April 11 — According to Jinshi Data, Federal Reserve's Kashkari said on Friday that recent market trends indicate investors are moving away from the U.S., traditionally the safest investment destination, as Trump's trade war escalates.
He noted that in recent days, as U.S. Treasury yields rose, the dollar depreciated against global currencies—an opposite trend to what is typically observed. "Normally, when you see大幅 increased tariffs, I would expect the dollar to appreciate. The fact that the dollar is falling at the same time makes the argument about shifting investor preferences more credible," Kashkari said.
He also stated, "Investors around the world have long viewed the U.S. as the best place to invest, and if that remains true, we will run trade deficits. One way this manifests now is through lower yields across U.S. assets. If the trade deficit narrows, investors might say, 'Well, the U.S. is no longer the most attractive investment destination in the world,' and then you’d see bond yields rise." However, Kashkari pointed out that what he sees are signs of "stress" in market functioning, not severe disorder.
