#404 Chris Whalen Answers Your Questions on the Fed, Rates & the Next Bailout
About this episode
Chris Whalen answers audience questions about the Fed, interest rates, and potential bailouts.
In part one of The Wrap's viewer question special, Chris Whalen takes on a full slate of audience questions about the Fed, the Treasury, and where rates go from here. He explains why Kevin Warsh and Scott Bessent have largely written off war-driven inflation as something monetary policy can't fix, and what it would actually take to change that posture. From there he walks through the plumbing most commentary skips: why shrinking bank reserves would push short-term yields down rather than up, how the Treasury can run its own version of quantitative easing through repurchase agreements, and why the Fed's mortgage-backed securities book — much of it now carrying an average life measured in decades — represents what he calls a study in hubris. He also fields the practical questions: whether long Treasuries are worth owning (his answer is no), where he'd park cash instead, what a 5% 10-year does to the deficit math, and how big the next crisis-era bailout would have to be. The episode closes on the yen carry trade, the limits of what Washington can do about it, and Whalen's expectation that nothing difficult gets attempted before the midterms. Thank you to our sponsor, Monetary…
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More episodes of The Julia La Roche Show
- #407 Larry McDonald: The Bond Market's Biggest Contrarian Trade
- #406 Chris Whalen Answers Your Questions on Gold, the Fed, and Retirement Risk
- #405 Ted Oakley: Gold Still Cheap at $4,600, The Energy Move Could Be Bigger, & 3 Signs of a Stock Market Top
- #403 Harry Dent on the Everything Bubble — And the Only Safe Haven Left
- #402 Chris Whalen: Private Credit's First Big Unwind — and Why Insurance Is Next
- #401 Jim Rickards: The Iran War, "Trump's on the Losing Side of That Bet," The Case for $10,000 Gold, and the Japanese Yen Carry Trade Unwind — The Most Important Financial Story in the World
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