FICC Focus Tariffs, Bonds, and Dollars With James Grant: Macro Matters
8 snips
Apr 3, 2025 
In this discussion, James Grant, founder of Grant’s Interest Rate Observer, shares his insights on the implications of recent U.S. tariffs and their dramatic impact on financial markets. He teams up with Ira Jersey and Will Hoffman to explore the risks for bondholders amid rising inflation and discuss current economic uncertainties. The trio delves into the significant influence of U.S. trade policies on national security and reflects on historical protectionist ideas that resonate today. They also navigate the evolving dynamics of cryptocurrency and its potential threats to market stability.
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Interest Rate Experiment
- The current interest rate experiment is like a child taking apart a clock, making it hard to reassemble.
- The reflexive flight to Treasury bonds, despite their devaluation by the Fed, might not be wise in the long run.
Dollar Dominance Uncertainty
- The dollar's dominance is uncertain, with potential shifts to other currencies or assets like gold.
- American exceptionalism, the idea of the US as the sole capital destination, is fading.
Monetary Policy Regime Change
- A potential regime change in monetary policy, moving away from interest rate manipulation, is anticipated.
- Grant's has been anticipating a potential shift towards a gold standard or similar system.