Joseph Wang
@josephwang
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Bessent's promotion of the FIMA Repo Facility is just theatre to boost the effect of his FX intervention - similar to his leaking of the his 'to do list.' FIMA Repo makes no sense for Japan.
The open secret is Japan already has hundreds of billions of dollars parked at the Fed's foreign repo pool, basically a checking account for foreign central banks. This can be inferred from public data after the facility was uncapped.
Also note private sector repo is abundant, trading at notably lower rates than the FIMA facility offering rate, and would not be publicly disclosed weekly.
Of course, Japan has access to standing Fed swap lines too. So it never has to sell Treasuries to get dollars.
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Markets Weekly August 1, 2026
Maybe confidence in Fed would increase if Kevin spoke less frequently.
SCOOP: Kevin Warsh is considering reducing the number of Federal Reserve policy meetings. The Federal Open Market Committee has met eight times a year for decades.
With @colbyLsmith
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This Warsh contradiction has been nagging at me. At Sintra at the start of the month, he took comfort at the recent decline in bond yields, implying bond markets understood low inflation was on the way. Today, he took comfort at *higher* bond yields, saying they will deliver low inflation. How can this be: that lower bond yields are reasons to feel good about inflation, but higher bond yields are not a reason to feel bad about it? Without him articulating a monetary and economic framework, these statements make it feel like he's winging it.
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30 year not liking Fed Chair with secret inflation target.
Wow Kevin is "not fully revealing his cards" and doesn't want to tell you how he measures inflation.🤡
Wow Kevin is "not fully revealing his cards" and doesn't want to tell you how he measures inflation.🤡
Kevin doesn't think there is trade off between full employment and price stability. Typically higher rates lower demand, which impacts employment.
When asked his mechanism to lower inflation without impacting employment he presents a long word salad.
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Markets Weekly July 25, 2026
AI trade faltering
Iran War Escalating
Fed hiking
🚨British embassy is withdrawing its staff from Iran. Last time they did this was a day before the Iran war began on Feb. 27
Markets Weekly July 18, 2026
Good economic data
Market takes two punches
Wow Senator Lummis suggesting Fed staff illegally destroyed SVB records to impede on-going investigation.
Markets Weekly July 11, 2026
Fed Task Forces foreshadow changes
I'd love 🇺🇸 to win, but not like this.
*LUTNICK WAS INVOLVED IN TALKS W/ FIFA ON BALOGUN: POLITICO
Markets Weekly July 4, 2026
Momentum meltdown
1873
Strange that markets putting greater weight on headline number disappointment rather than the decline in the unemployment rate, which would argue for a hawkish reaction.
Markets Weekly June 27, 2026
Tech Stumble
Solo Entrepreneur Boom
via Nomura. @t1alpha has been doing similar work on this topic.
So: The business formation surge looks like a structural increase in genuine small business activity, driven by solopreneurs. AI is probably not the whole story, but it may be lowering the minimum efficient scale of entrepreneurship.
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