Tensions between President Donald Trump and Federal Reserve Chairman Jerome Powell have reached new heights—and the financial markets are feeling the pressure. On Monday, Trump launched another sharp attack, calling Powell the “biggest loser” and demanding immediate interest rate cuts.

Trump argues that inflation in the U.S. is virtually non-existent, and if the Fed doesn’t cut rates now, the American economy could face a major slowdown.

📉 Market Reaction: Sell-Off in U.S. Dollar and Treasury Bonds

Investors responded by fleeing traditionally “safe” assets like U.S. bonds and the dollar. The greenback plunged to its lowest level since 2022, and 10-year Treasury yields rose above 4.4%. Instead, capital is flowing into alternative assets like gold—which hit a record high of $3,500 per ounce—and bitcoin, which surged to $91,000.

🚨 Wall Street Warning: “Sell America” Trade

Top Wall Street strategists are warning about a dangerous shift: a growing "sell America" sentiment, where investors move away from U.S. markets entirely. This unusual trend signals fears of stagflation—a mix of stagnant growth, persistent inflation, and rising unemployment.

JPMorgan reported a $3.6 billion outflow from U.S. equity ETFs, while developed international markets saw a $3 billion inflow. It could be the beginning of a broader pullback in foreign investment—something U.S. markets heavily depend on.

🧨 Trust in U.S. Stability Is Shaking

According to Ritholtz Wealth Management, foreign investors hold nearly a third of all U.S. stocks and more than a quarter of U.S. government debt. Wall Street has long been seen as America’s “secret weapon” of global dominance—but that perception is starting to fade.

Micheal Goosay from Principal Asset Management says foreign investors are “getting nervous.” He believes political instability, trade tensions, and economic uncertainty are eroding global trust in the U.S. financial system.

🌎 The World Is Watching: Can America Still Lead?

Kevin Khang from Vanguard summed it up clearly: “At the very least, this reminds us that the world is watching to see if the U.S. will continue to serve as a provider of global stability.” Without restored confidence, we could be headed for a dramatic reshuffle in the flow of international capital.

#TRUMP , #WallStreet , #CryptoNewss , #TradingCommunity , #stockmarket

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