Bloomberg Surveillance · Friday, August 28, 2026
Richard Clarida stated that he does not anticipate a revival of the 'debasement trade,' where investors move out of U.S. dollar-denominated assets. He cited a global sell-off in yields and the dollar's performance, which has been flat or rising in recent months, as reasons against this expectation.
“If Chair Warsh doesn't deliver what a lot of investors are looking for, do you see a sharp revival of that debasement trade?”
“Scarlett, I really don't.”
“So there are global factors at play, not just the Fed. In fact, if anything, really, since Liberation Day now 15, 16 months ago, the dollar has been flat or even in the last several months after hostilities in the Middle East going up.”