Fed's Kashkari Comments on Market Trends Amid Trade Tensions

According to Odaily, Federal Reserve official Neel Kashkari stated on Friday that recent market trends indicate investors are moving away from the United States, traditionally considered the safest investment destination, amid escalating trade tensions under U.S. President Donald Trump. Kashkari noted that contrary to typical expectations, the U.S. dollar has depreciated against global currencies as U.S. Treasury yields rise. He explained that usually, an increase in tariffs would lead to a stronger dollar. However, the current depreciation suggests a shift in investor preferences. Kashkari remarked that global investors have historically viewed the U.S. as the best investment location, which would typically result in a trade deficit. The current trend of declining asset yields in the U.S. reflects this perception. Kashkari further mentioned that if the trade deficit decreases, investors might perceive the U.S. as less attractive, leading to rising bond yields. Despite these observations, he emphasized that the market is experiencing 'pressure' rather than severe disruption.