The Federal Reserve warns: If US assets lose their "safe haven" status, it will have a long-term impact on the US economy.

Federal Reserve officials warned that the global trade war initiated by US President Trump could have a "long-term" impact on the US economy as it could lead to the country losing its safe haven status. The latest meeting minutes from the Federal Reserve showed that some rate setters were concerned about the decline in US Treasury bonds, stocks, and the dollar in the weeks following Trump's announcement of tariffs against trading partners. The minutes stated, "These participants noted that the continued shift in these relationships, or the diminished safe-haven status of US assets, could have long-term implications for the economy." The May FOMC meeting was the first meeting after the turmoil that followed Trump's announcement of tariffs on April 2nd, also known as "Tariff Day". Historically, during periods of market volatility, global investors have always flocked to US assets.