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Michael Kao, CIO at Akadia Capital, questions Warsh’s stated intention to avoid forward guidance, observing that his recent commentary sounds notably hawkish.
Kao also highlights developments in the Hormuz Sieve, suggesting that Iran’s potential to weaken the U.S. Hegemonic Premium could be diminishing.
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Kao has previously commented on how China's ongoing mercantilism and economic imbalances impact global markets, assessing recent analyses in the field (see article). He has also detailed how value changes in stressed firms can lead to major moves in fulcrum securities, with a focus on leveraged capital structures (full story). These earlier remarks add context to his latest views on monetary and geopolitical shifts.