Fed's Kashkari: Investors are pulling out of the U.S.

Odaily Planet Daily News Federal Reserve Kashkari said on Friday that recent market trends show that investors are leaving the United States, the safest place to invest, as Trump's trade war escalates. He said that in recent days, as U.S. Treasury yields have risen, the dollar has depreciated against global currencies, and the trend is the opposite of what you usually see. "Normally, when you see a sharp 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. If this is the case, we will have a trade deficit. Therefore, one way it is manifested now is that the yields of various assets in the United States are lower." "If the trade deficit falls, investors may say, well, the United States is no longer the most attractive place to invest in the world, and then you will see bond yields rise." However, Kashkari pointed out that he saw "pressure" in market operations, not serious chaos. (CNBC)