Supply Shock On the Margin: The Fed Put Is In & Global Easing Has Begun | Weekly Roundup
Aug 24, 2024
Kamala Harris, a prominent politician known for her innovative economic proposals, shares insights on the Fed's recent dovish stance and its implications for employment versus inflation. The discussion covers the evolving landscape of credit markets and the challenges facing venture capital and real estate. They also explore the crypto regulatory hurdles, emphasizing the desire for traditional financial inclusion. With a focus on global liquidity dynamics, the conversation suggests a hopeful outlook for economic recovery amid changing market conditions.
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Fed Put Is In
- The current market expects easing to signal problems, but this time might be different.
- The Fed put is in, signaling a pivot to a substantial cutting cycle.
Fixed Income Signals Stability
- Focus on fixed-income markets, where inflows and contained inflation signal stability.
- A large volatility buyer caused recent market de-leveraging, but fixed income remains steady.
Overlooked Fed Indicators
- The Fed is watching rising unemployment and forward break-even rates.
- These overlooked indicators are crucial for understanding Fed policy.