Recent actions in the US political arena have directly stirred the global financial markets. After news broke that the Federal Reserve Chair was served a criminal subpoena, the market immediately responded—a wave of "sell US assets" sentiment quickly spread from Asia to the rest of the world.

Numbers speak for themselves. In early Asian trading, the Bloomberg US Dollar Index fell by 0.2%. This seemingly small fluctuation masks a broader trend of the dollar weakening against G10 currencies. S&P 500 futures declined by 0.6%, and Nasdaq 100 futures dropped even more sharply, by 0.9%. US Treasury futures were also not spared, coming under pressure simultaneously. This is not an isolated fluctuation of a single asset class but a sign of a broad retreat of US assets.

Where is the problem? Essentially, it’s concerns over the independence of the Federal Reserve. Monetary policy was once considered the central bank’s domain, but now that line seems a bit blurred. Disagreements between the government and the central bank over interest rate cuts have not only opened up decision-making gaps but also prompted investors to start questioning: should I reduce my allocation to US assets?

The logic behind this wave of trading is quite clear—if interest rate policies are no longer independent, the credibility of the dollar as a reserve currency will be undermined. And once market confidence in US assets begins to crack, the subsequent chain reactions are hard to predict.