Joseph Wang: Powell denies rise in foreign hedging on dollar assets amid positive FX swap basis

Joseph Wang: Powell denies rise in foreign hedging on dollar assets amid positive FX swap basis
@josephwang: Powell denies foreign hedging rise

Federal Reserve Chair Jerome Powell has denied that there is a significant increase in foreign investor hedging in U.S. dollar assets, according to a tweet by Joseph Wang. This aligns with current market pricing, as indicated by a positive foreign exchange swap basis.

Powell’s assessment comes as discussion continues around the Federal Reserve’s policy trajectory and market expectations. These dynamics parallel themes highlighted in analysis of a potential shift should the Warsh Fed prioritize a lower rate path in its strategy, as previously explored by Joseph Wang.

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