Ep. 179: Mustafa Chowdhury on Fed Policy, US Industrial Policy and Housing Risks

Mustafa is a rates guru and member of the research team at Macro Hive. Before this, Mustafa was the Head of Rates, FX, and Derivatives at Voya Investments, where he helped manage $40 billion of assets. Prior to that, he was a Managing Director and Head of US Rates and MBS Strategy at Deutsche Bank. And in the 1990s, he was Co-head of Asset-Liability Management at Freddie Mac, where he was responsible for managing one of the world’s largest fixed income derivatives portfolios and trading desks. In this podcast we discuss:

• Why the Fed still needs to hike rates
• Should Fed inflation target change?
• Does r-star matter?
• The importance of US fiscal and industrial policy
• Difference between US and Euro yields
• Worries about US debt and deficits, QT and auctions
• Why is US economy so strong?
• Understanding US housing
• Upsides risks to inflation
• Investors are overestimating upside risks to JGB yields
• Thoughts on China
• Favourite trades
• Book recommendation by Mustafa: Bengali Harlem and the Lost Histories of South Asian America (Bald)

You can follow Mustafa here.

Read the full transcript here.

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(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)