New Challenges for the Fed with Lundy Wright [REPLAY]

Lundy Wright

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As we close out summer and head into Labor Day weekend, we decided to re-air one of our most listened to episodes thus far, which features our resident expert on all things fixed income and the Federal Reserve, Lundy Wright. Given the nature of the topics for this episode, we believe this episode remains highly relevant in the current market regime.

Thank you to our loyal listeners. We will be back next week with a new episode.

Now that the Fed has finally hiked rates, which surprised no one, we should expect to see a sea of prognosticators turn their attention to what the future holds for Fed policy. In this episode, host G3 speaks with Weiss's Lundy Wright about structural forces that play into future Fed decisions. Lundy has been watching the Fed for decades and brings a perspective and wisdom to the table that few others have.

While not surprised by the Fed’s press conference, Lundy says that Chair Powell was more hawkish than many had expected. Still, while the Fed did provide some measure of clarity to the markets for this year, he believes that there is a fair bit of uncertainty lingering.  

Topics Lundy and G3 proceed to cover include how the Fed’s job could be complicated by deglobalization and the divergence between nominal and core inflation. As it relates to deglobalization, Lundy believes that recently enacted protectionist policies create greater uncertainty with respect to some of the models that the Fed uses.

Lundy also makes a point of identifying how inflation is experienced differently by companies and consumers. G3 concludes the conversation by asking Lundy whether Americans will become house-poor in the near future and how his card counting background influences the way in which he trades and analyzes the Fed.

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Important disclosures: Disclosures: This content (the "Insights Page") is provided by Weiss Multi-Strategy Advisers LLC ("Weiss"). The views expressed on the Insights Page are for informational purposes only and are subject to change without notice. Information on the Insights Page has been developed internally and is based on market conditions as of the date of the original post on the Insights Page from sources believed to be reliable. Nothing on the Insights Page should be construed as investment, legal, tax, or other advice and should not be viewed as a recommendation to buy or sell any security or adopt any investment strategy. Past performance is no guarantee of future results. Please consult your own advisers regarding business, legal, tax, or other matters concerning investments. Weiss has no control over information at any external site hyperlinked on the Insights Page. Weiss makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and has included hyperlinks only as a convenience. The inclusion of any external hyperlink does not imply any endorsement or ongoing monitoring by Weiss of any hyperlinked site. Investing in securities is speculative and involves substantial risk of loss.