The Great Deleveraging: Can Momentum Return to Markets?
TL;DR
An industry-wide deleveraging across stocks, bonds, and hedge funds—along with reduced margin debt in Korea and Japan and unwinds of UST basis trades—has cooled markets, even as Warsh’s limited Fed guidance fuels debate. The piece weighs two futures: more deleveraging that could dampen risk assets, or a cleaner setup that might reaccelerate momentum, with US equities edging toward highs as inflation data shapes rate expectations.
- After the great deleveraging ft.com
- Opinion | At the Fed, Kevin Warsh’s Silence Speaks Volumes The New York Times
- Warsh is being misread ft.com
- Jobs report will offer fresh test of Fed Chairman Warsh's less-guidance stance Reuters
- Trump Fed chair’s inflation strategy: leave it to the market | Eduardo Porter The Guardian
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