Normally, when Weiss’s bond expert, Lundy Wright, comes onto the pod, it’s because the Fed has just met and made its decision on interest rates and the choice of words it used in the accompanying statement. We also spend a lot of time discussing Chairman Powell’s press conference that follows the decision and what he said (or didn’t say) and how he answered questions posed to him by the press.

But it’s a new year, and G3 is going to try something new in ‘24. As our listeners know, the Fed will be meeting next week, so G3 invited Lundy onto the pod ahead of time. In doing so, our hope is that it will provide our audience with a new vantage point by revealing the specific things that Lundy will be looking for during the meeting.

Please check important disclosures at the end of the episode.

This episode was recorded on Thursday, January 25th.

Timestamps:

• Besides the FOMC meeting, what other factors could drive markets next week? [1:50]
• When did markets start expecting rate cuts as a norm instead of a response to economic downturns? [8:25]
• Could details of the anticipated tapering of quantitative tightening play a role in the market’s reaction to the Fed meeting? [16:29]
• How might the markets react to a divergence between the Fed’s statement and Powell’s press conference? [22:28]

Resources:

• Overview of the TBAC
• The careful balance between hard and soft data on the economy
• The Fed and the dual mandate in plain English
• Lagarde speaks after rate decision
• How might the Fed roll back QT?

Disclosures: This podcast and associated content (collectively, the “Post”) are provided to you by Weiss Multi-Strategy Advisers LLC (“Weiss”). The views expressed in the Post are for informational purposes only and are subject to change without notice. Information in this Post has been developed internally and is based on market conditions as of the date of the recording from sources believed to be reliable. Nothing in this Post should be construed as investment, legal, tax, or other advice and should not be viewed as a recommendation to purchase or sell any security or adopt any investment strategy. Past performance is no guarantee of future results. You should consult your own advisers regarding business, legal, tax, or other matters concerning investments. Any health-related information shared on the podcast is not intended as medical advice or for use in self-diagnosis or treatment. Please consult a qualified healthcare professional before acting upon any health-related information on the podcast. Weiss has no control over information at any external site hyperlinked in this Post. 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, investigation, verification, or...