Fed’s Kashkari Says Rising Bond Yields, Falling Dollar Show Investors Are Moving On From The U.S.

Minneapolis Fed President Neel Kashkari said recent market trends suggest investors may be shifting away from the U.S. as a safe investment amid President Trump’s escalating trade war. Despite rising Treasury yields, the U.S. dollar has weakened—an unusual combination that Kashkari sees as a sign of changing investor sentiment. He noted that if America becomes less attractive to investors, yields could rise as demand for U.S. assets falls.

While Kashkari sees some market stress, he doesn’t believe there are major disruptions. He emphasized the importance of maintaining stable inflation expectations and indicated interest rates are unlikely to change until there’s more clarity on trade and fiscal policy.