Forex
Yen Carry Traders Bet on Aggressive Fed Rate Hikes
A new indicator from the yen carry market is flashing warning signals that preceded significant Federal Reserve policy pivots.
The indicator suggests that carry traders are positioning for aggressive Fed rate hikes in the coming months, as they don't see current inflation as transient.
President Trump's tariff policies and the Iran war have created an anomaly that may be even more extreme than the one preceding the Dot-Com bubble.