Global Investors Revisit 'Sell America' Trade as Fed Dissenters Backed 1 Immediate Rate Hike
Updated
Updated · Yahoo Finance · Aug 5
Global Investors Revisit 'Sell America' Trade as Fed Dissenters Backed 1 Immediate Rate Hike
3 articles · Updated · Yahoo Finance · Aug 5
Summary
Global bond and currency investors are reconsidering last year’s “Sell America” trade after a burst of Washington policy moves over the past two weeks unsettled confidence in US assets.
Kevin Warsh’s sparse communication as Federal Reserve chair sharpened that debate by raising doubts about the Fed’s resolve on inflation, especially after an unusually large bloc of officials favored an immediate rate increase.
That combination has pushed investors to question whether the dollar and Treasuries could again come under pressure if policy signals stay inconsistent.
The renewed discussion points to a broader worry that shifts in US economic management are reviving a trade many investors thought had faded with last year’s market cycle.