The so-called “Sell America” trade seems to be gaining traction after news broke that Federal Reserve Chair Jerome Powell is under criminal investigation.
In Monday’s session, the U.S. dollar is broadly weaker, while gold and other precious metals are pushing to fresh record highs. The move feels less about any single economic data point and more about confidence or the lack of it in U.S. institutions. Markets appear to be reacting to the risk that political pressure could start to interfere with monetary policy, which is usually a big red flag for global investors.
So far, this looks like a classic risk-off response: money moving out of the dollar and into hard assets as a hedge. Whether this turns into something more sustained likely depends on how the investigation unfolds and whether it escalates into a broader challenge to the Fed’s independence. For now, the reaction suggests investors are at least taking the possibility seriously.
Source:
https://www.cnbc.com/2026/01/12/sell-america-trade-trump-powell-investigation.html?__source=androidappshare