Markets show 'Sell America' sentiment after Fed subpoena

Strategists said a Fed subpoena prompted 'Sell America' sentiment among some investors, while others pointed to the dollar's reserve role, deep Treasury liquidity and AI-driven gains as factors limiting broader outflows.

Markets reacted after reports of a subpoena involving the Federal Reserve, prompting discussion about a possible 'Sell America' trend among some investors. The matter has drawn attention because strategists see it as relevant to asset attractiveness and policy direction. Comments from major asset managers highlighted differing interpretations of the same developments. Key developments: - A subpoena involving the Federal Reserve has been cited by some strategists as a factor reducing appetite for U.S. assets. - David Chao of Invesco said the episode is being viewed as an example of the U.S. retrenching and raised concerns about the country's policy stance. - Marvin Loh of State Street noted the dollar's reserve role, deep Treasury liquidity and gains tied to artificial intelligence as reasons some investors remain cautious rather than broadly selling. Summary: The immediate effect has been increased debate among investors about the attractiveness of U.S. assets, with some selling interest reported and others pointing to stabilizing forces. Undetermined at this time.