Fed’s Kashkari: Rising bond yields, falling dollar mean investors are moving away from US

That is way too precise of a conclusion to be anywhere in the realm of accurate

Yes, definitely creating some bumpiness with the recent geopolitical moves. But the US still has good fundamentals with its large consumer base and generally business friendly govt. Most of what has happened this month can just as quickly be undone. It’s the uncertainty causing the problem. No one knows what will happen but hopefully after all the back and forth something will be negotiated to save enough face for everyone and bring some certainty or semblance of “normal” back to world trade.

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Investors around the world have viewed America as the best place to invest, and if that’s true, we will have a trade deficit. So now one of the ways that expresses itself is in lower yields across asset classes in America,” Kashkari said. “If the trade deficit is going to go down, it could be that investors are saying, OK, America no longer is the most attractive place in the world to invest

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This makes zero sense to me. If investors invested in U.S. that means they’re making product in the U.S. or providing a service in the U.S. How can that increase the trade deficit? It should have either little effect or reduce the deficit if they export the product or service from the U.S. to other countries

Are they trying to say the money coming into the U.S. as investment is counted monetarily towards the total imports?

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Fed’s Kashkari: Rising bond yields, falling dollar mean investors are moving away from US

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Been an interesting week for the cut now crowd SDV. You got the cpi/ppi you needed but rates are not cooperating.

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Powell isn’t cooperating**

He’ll be forced to cut sometime between now and June

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It has also been one week. I don't get why so many people live off the whim of a few days on these things. Why don't we just check back in October and see everybody crawfish out of their stances then?

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Wait and see isn’t very exciting. It’s also not what many institutions tend to do, for better or worse.

FWIW, I agree with you. Just as stocks are attractive, so to are bonds here.

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CNBC

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GTFO.

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This makes zero sense to me. If investors invested in U.S. that means they’re making product in the U.S. or providing a service in the U.S. How can that increase the trade deficit? It should have either little effect or reduce the deficit if they export the product or service from the U.S. to other countries Are they trying to say the money coming into the U.S. as investment is counted monetarily towards the total imports?

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Bond yields is specifically talking about Investing in US Treasury securities. We’ve learned that Japan recently sold a bunch of them.

This movement indicates the belief that the US Treasury is no longer being viewed as the #1 safest investment.

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Between 2021 and 2025, the U.S. dollar's purchasing power has decreased by approximately 15.3%.

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Printing out trillions do that