Alf and Brent discuss the significant market reaction to Warsh&#x27;s press conference: the Fed handed over the keys to the bond market, and now Bond Vigilantes are in charge until data comes in to set the direction straight for everyone. How to handle such a market environment?

Warsh Woke Up The Bond Vigilantes

The Macro Trading Floor

The Macro Trading Floor With me, Alfonso Peccatiello, founder of the Macro Compass and former head of investments at a large European bank. Brent Donnelly, president of Spectra Markets. I've been a portfolio manager, day trader, and market maker at the biggest commercial and investment banks in the United States. I'm also the author of Alpha Trader and the Art of Currency Trading. If you want to know what's going on in markets and where they're going, you've found the right podcast.

Hi everybody and welcome back to the Macro Trading Floor. Brent Donnelly, Alf, the duo you like so much talking about markets. Are we going to talk about something or should we do like Warsh does? Basically don't tell the market anything. You don't know how are they looking at inflation growth, nothing, no intellectual framework. We just let the audience of the Macro Trading Floor take over, do the tightening or the easing for us. It's crazy. And then of course, if you let the market take over, you can't tell the market.

Then the market does take over, Brent. Bond markets are not known to be lenient, I would say, if you give them a hand and a fist to take over, right? Yeah, the market definitely did not like the press conference yesterday. There's just no direction whatsoever. And I mean, obviously, to not give forward guidance is one thing, but they kind of like are giving this mixture of some people are still doing speeches.

There is some guidance of some sort. There's no official forward guidance, but there never really was before either. There was just more of like a spoon feeding. If the market was not pricing what they wanted, then they would get journalists to price it or whatever.

Warsh Woke Up The Bond Vigilantes

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Warsh Woke Up The Bond Vigilantes

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.