US Fed Subpoenas Revive 'Sell America' Trade Amid Autonomy Concerns

• The 'Sell America' sentiment resurfaced in markets after the Trump administration escalated attacks on the Federal Reserve, raising concerns about the central bank's independence.
• Dollar, Treasuries, and US equities futures slid in early Asia trading following Chair Jerome Powell's statement linking a potential criminal indictment to monetary policy disagreements.
• The dispute, stemming from Trump's long-running feud with Powell over interest rates, highlights the debate on political influence over the Fed's rate stance.
• Investors are questioning exposure to US assets and the dollar, reinforcing diversification trends and increasing interest in traditional hedges like gold.
• The escalation sets the stage for heightened market volatility and could lead to a steeper Treasury yield curve and pressure on the dollar and Treasuries.

Why It Matters: Political interference concerns regarding the US Fed's autonomy are reviving 'Sell America' sentiment, impacting global markets.