3min chapter

Hidden Forces cover image

Does the Fed Have Any Idea What It’s Doing? | Jeff Snider & Brent Johnson

Hidden Forces

CHAPTER

The Eurodollar Futures Market's Response to Tight Credit Conditions

Jeff Kagan: I'm curious to what degree can we actually intuit that as market participants? Well, I don't know if you can quantify it. You can't look at a Eurodollar futures contract or even the curve and say, this is literally going to be this," he says. "If everybody suddenly starts hedging quite a lot buying Eurodollar futures, that's probably a pretty valid signal" The markets were already massively inverted in a way that we hadn't seen since 2007, really the late part of 2007 into 2008,. And since then it's been absolutely insane ever since the Friday that SBB was finally announced by the Fed.

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