should j pao have have talked about that i mean given that its not within his remit theres only so much that monetary policy framework can actually address oh of course you should i mean its the fundamental driver of whats going on and this is a fed chair from a central bank which has recently been talking about climate and social justice which i believe a part of their remit either but theyve been talking about it endlessly they see them as very important issues therefore they talk about them even though monetary policy can really do nothing for either and here we have an issue which is going to keep inflation high for years and years and has forced them to humiliatingly do a complete uturn to raise rates more aggressively they have done for decades and they dont want to talk about why its completely intellectually dishonest not to let us know why michael i wanna throw up this chart taking a look at what we see in terms of the investor reaction the market reaction we see this selloff being extended we see you know of course the start of another ramp up of qe quantitative tightening to begin for september as well does it feel like the markets have learnt a lesson or you know i think youve been fairly critical about the way that market participants have chosen to interpret guidance like this well no i think theres still a lot more lessons to be learned the only market thats really starting to price things incorrectly i think is the effects market which is usually the the last dollar where the dollar just keeps getting stronger and everyone keeps saying well therell be a pause here maybe it will come back down again and it keeps going up which is what happens in structural crises like were seeing at the moment until eventually we crossed the rubicon and the dollar doesnt go away still a long way from that for now but if you look at the effects mark gurman you look at the equity market how could there have been any surprise about what was said because thats been flagged again and again and again but there was this selfdelusion that somehow the fed was still in the same structural playbook for the last 30 40 years where its always one bailout after another and the rates market we are seeing those yields go higher over the short term which is logical and at the long end and in the long end just quite begrudging because they still think youre going to get more inversion over two years hence which is logical to a degree but that implies they think that rates will come down again at some point theyll have to the fed is indicating that no theyre going to go out and just stay there and stay there and stay there and stay there and pivoting back to what i was talking about the supply side you tell me how we fix that right you tell me how he thinks michael barr i think youre pulling with so your point is well taken but i think that the point of the speech i think really was purely communication because i think the fed isnt quite sure how long theyre going to have to keep that rate high but thats one point they made very clearly this time mary daly made it in an interview with us a couple of weeks ago in san francisco why she said why people look at this big hump thats going to stay there its going to go up and that they to go up and she said why do they think is going to come down she said its going to go up and stay up what is that going to mean for markets is certainly seemed supportive for the dollar is supported for the dollar its negative equities and its negative bonds its negative credit its negative for just about everything but it depends what level we actually get up to before we pause and then how long it takes before the market realizes yep that is our structural new normal or new new normal we are not going to see what we have seen for the past couple of decades which is rates go up to that level and go back down again straight away to an even lower low which is a paradigm ive been backing for about two decades ok but i think i fear weve moved away from it well see in terms of what this means for asian economies asians currently a lot of conversation in jackson hole i was there and i think being written about now that the fed keeps raising rates if it keeps rates high the implications that put the dilemma put some some countries and their currencies in well absolutely i mean youre seeing downward pressure right the way across the asian ethics spectrum i dont see any reason why that would change and whats even worse is pertinent to the supply backdrop which were still not discussing the geopolitical backdrop which even here were still not talking about as if its the elephant in the room commodity prices are likely to continue to march higher so if youre an asian importer you need to buy those commodities at a higher price with us dollars which are more expensive which you cant earn because demand in the us will be lower so its an absolute triple whammy for them