Money
Quinn Thompson says Kevin Warsh aims to tighten via long-end yields
Forward Guidance
The AI Unwind And Warsh's Long-End Gamble | Weekly Roundup
"The reason the long end increased was because he said that he wanted to remove balance sheet accommodation for the long end. He said at the outset he said a core question I posed to the committee and our task forces is how much accommodation is the long end uh is the Fed's balance sheet providing the the market and monetary policy."
Quinn Thompson says the market misread Kevin Warsh’s press conference, and argues Warsh was signalling balance-sheet-driven tightening rather than front-end rate rises. He says that reading fits the long-end sell-off and widening credit spreads as the intended policy transmission.
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Forward Guidance