Citigroup CEO Jane Fraser Believes 'Sell America' Mood in Markets Won't Persist

Main Insights

• Despite recent headlines prompting some investors to divest from U.S. assets, Citigroup CEO Jane Fraser believes this trend will be short-lived.
• Fraser noted in a CNBC interview on Tuesday that she does not see clear alternatives for investors at this time.

Jane Fraser, CEO of Citigroup, expressed confidence that the current shift away from American investments is unlikely to persist.

On Tuesday, U.S. equities experienced significant declines, the dollar weakened, and bond prices fell, resulting in a notable rise in Treasury yields. Meanwhile, investors sought safety in gold and silver. Fraser explained on CNBC that these swift market moves are typical responses to recent news, particularly after the White House revealed over the holiday weekend that new tariffs would be implemented as part of efforts to influence Greenland’s future.

Fraser anticipates that U.S. assets will regain their appeal, stating, “I don’t see any obvious alternatives for investors.”

She also emphasized the resilience of American businesses and consumers: “Never underestimate the American entrepreneur. The consumer remains strong,” Fraser remarked. She acknowledged the challenging geopolitical environment but expressed confidence in companies’ ability to adapt.

Investor Relevance

Market volatility has increased since President Donald Trump announced intentions to impose new tariffs on countries resisting his Greenland initiative. Opinions among business leaders and analysts vary regarding how long this period of uncertainty will continue.

Fraser mentioned that corporate executives are optimistic about a resolution being reached soon. She also highlighted that both companies and investors have become more adept at managing trade disruptions and uncertainty in recent years.

“The market has learned to look past the noise and focus on underlying fundamentals,” Fraser said, emphasizing a long-term perspective.

From her viewpoint, the U.S. remains well-positioned. She pointed to strong consumer spending during the holidays and suggested that tax code changes could further boost activity in the spring. Fraser also noted that deregulation and investments in artificial intelligence and other key areas may benefit companies moving forward.

Wedbush, a financial services firm, shares this optimistic outlook, predicting that the current tensions will subside. In a research note, Wedbush analysts wrote, “Negotiations will likely ease the situation, and the impact of tariff threats will be less severe than feared as discussions between Trump and EU leaders progress.”