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?

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