Why the Yen Carry Trade matters

Why the Yen Carry Trade matters
There are many ways by which the Japanese have injected their “cheap” money supply into the US and other global markets. (Image: Getty)
Mateen Chaudhry
Many people have criticised US Federal Reserve chair Jerome Powell for not cutting rates sooner. Although inflation peaked a long time ago, Powell has kept the cost of money high. But what if Powell couldn’t cut rates as his hands were tied?It would seem his concern may have been the extent of deleveraging that might take place if the US had to cut rates, while Japan was simultaneously hiking them. The jobless figure last week was concerning but the real issue causing the current volatility in markets is the potential of an unwi...

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