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Here comes the Fed



David R. Kotok - In the News


Here comes the Fed — Not at all clear that Fed Chair Jerome Powell and the central bank will send a clear signal this afternoon on plans to begin trimming asset purchases, though Wall Street expects at least a commitment to give more formal guidance in November. Powell and his FOMC colleagues remain in a tight spot.

China risk remains — Cumberland’s David Kotok emails: “I don’t think Evergrande is a one-off. There are other property companies in China with similar issues. …

“China real estate bubble risk is not known. Global GSIB banks and derivatives notional books are opaque so cross border contagion risk is unknown. History. Thai baht in 1997 initially dismissed as a one-off. Bear Stearns in 2007 initially dismissed as a one-off. You never see just one cockroach. Also, this shock comes in the middle (it’s not over) of the pandemic.”

Read the full edition of Morning Money at Politico's website: https://www.politico.com/newsletters/morning-money/2021/09/22/here-comes-the-fed-797752

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David R. Kotok
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