Exante Data’s Jens Nordvig was on Kathy Jones’s podcast, OnInvesting, to discuss rate cuts, the dollar, government debt, and how that affects markets.
Jens’s interview starts around 00:08:30 discussing his background and why he launched MarketReader.
Kathy and Jens debate the world economy and how the focus shifted from inflation to the growth story (00:13:40). Are financial conditions under control or do we have a dramatic tightening of financial conditions and how much can the economy actually take?
Kathy and Jens then discuss the dollar (00:23:10). What is keeping the dollar so firm? De-dollarization was a theme in the spring but Jens argues this a regular narrative that often comes back with China’s actions. The main alternative to the dollar, China’s renmibi, is in a terrible situation. Authorities have to intervene to keep it stable. Jens argues two factors are most important for the dollar, first the Fed’s stance is particularly important, but what is also key is global growth. Global growth has been going the opposite direction of US growth: global growth is weak, while US growth is revised upwards.
Tune in to follow the rest of the discussion!