Bloomberg Surveillance · Monday, July 6, 2026
Andrew Slimon of Morgan Stanley interprets the new Federal Reserve chair's actions as signaling an end to easy monetary policy, specifically the contraction of the balance sheet. This shift means less liquidity in the market, which Slimon believes will prevent further multiple expansion and could even lead to contraction, also supporting a stronger dollar and lower gold prices.
“What I take away from my little whirldpoll is that multiples aren't going up. And the reason I say that is that what I hear is no more quantitative easy, no more flooding the market. You know, we're not going to buy as much. We're not going to expand the balanceet. We're going to contract the balancing and that means less liquidity. Less liquidity equals no more pee expansion, potentially pee contraction.”
“So that's you know, that's why when I said twenty times, all the market's trading a little higher than twenty times, So I think I just don't see a market that can move higher on evaluation.”
“The other thing I think is I think it's bullesh for the dollar, and that's one of the reason why the gold has sold off, is it's it's. A dollar bull move.”