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Federal Reserve: Paper Documents Rising Fragmentation in Foreign Direct Investment Amid Geopolitical Tensions
July 23, 2025

WASHINGTON, July 23 (TNSRep) -- The Federal Reserve published an International Finance Discussion Paper (IFDP) titled 'Breaking Up: Fragmentation in Foreign Direct Investment,' authored by Cody Kallen and released on July 16, 2025. The report provides systematic evidence on how modern geopolitical tensions and supply chain vulnerabilities are fragmenting global foreign direct investment (FDI) along ideological and geographic lines.

The paper identifies five distinct dimens . . .

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