Goldman Sachs President John Waldron said investors have recently reduced their holdings of U.S. dollar assets, returning to more balanced positions instead of rushing to exit American investments.
Financial markets have been volatile in the first months of the Trump administration. On April 2, the White House raised tariffs on trading partners, causing some investors to pull back from U.S. assets. Since then, progress on tariff agreements has helped ease concerns.
Waldron explained that some investors who had held 10%, 20%, or even 30% more U.S. dollars than usual have scaled back to more neutral levels.
He noted that investors had been optimistic about the U.S. economy outperforming others. “Most had an overweight position in U.S. assets,” he said.
However, after the tariff announcement, clients began actively adjusting their currency portfolios.
“The reduction in dollar holdings since April 2 reflects taking out the excess exposure, not a full-scale exit,” Waldron told Reuters.
He added that despite the uncertainty around U.S. policies, there is no widespread move to cut back holdings due to volatility.
Waldron, 55, recently joined Goldman’s board of directors, following a retention bonus, positioning him as a likely future CEO after David Solomon.
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