A Crowded Yen Carry Trade Meets the Fed's Biggest Week

Jackson Hole is where a Federal Reserve chair changes the framework instead of restating it, and Kevin Warsh wants forward guidance gone. James Stanley, Senior Strategist at StoneX Media, explains what Warsh could do to Federal Reserve communication and why the yen carry trade matters more. Markets are pricing roughly a 73 percent chance of at least one rate hike by year end, an unusual read for a central bank that has leaned dovish whenever it could. The dollar basket has held up largely because the Japanese yen has fallen more than 50 percent in five years, leaving the DXY exposed to any unwind in a crowded carry trade. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_james_stanley&utm_content=share 0:00 Jackson Hole Is Never Routine 1:07 Forward Guidance Was the Fix 3:29 Powell Pivots at Jackson Hole 6:17 Warsh Plays the Hawk Role 8:44 Dollar Yen Carry Trade Risk 11:01 The Yen Holds the Dollar Up 12:09 Japan's Shrinking Population 17:16 Where Dollar Weakness Shows Like and subscribe for more financial market insights. #StoneX #JamesStanley #Forex #FederalReserve